Why Diversified Bundles Are The Smart Ways To Invest In Crypto
Back in the 90s, we would have grabbed the chance to invest in companies like Google and Amazon. However, during those times, picking up the winning investment of the internet age was not at all as easy as you think.
There is no doubt that investing in Google or Amazon in those early days would have been the best investment of all time.
At the same time, there were more than a hundred internet companies to choose from.
Suppose you had invested in Amazon in the ’90s; would you still be holding on to that when in 2001, it fell over 95%. So, the big giant Amazon fell more than 95% before becoming the giant it is today.
Revix, the Crypto investment firm, had performed a simulation where they ranked the topmost 50 companies as per their market capitalization or value. Then they invested equal amounts in those 50 companies at the peak of the internet bubble back in 2000.
After investing 2% in each company, the simulation of Revix left those investments untouched till 2017.
During this duration of 17 years, around 88% of the 50 companies failed.
However, due to the potential of diversifying the 2% that were allocated to the winning companies, such as Amazon and more, the portfolio of Revix recovered all the losses along with managing an impressive return of 14% per year.
That equates to around 9 times or 828% of the return over the particular period of 17 years.
Diversification In The Crypto Market
From this story, we learn that Investing in the Crypto market is almost similar to early internet investing. It is almost impossible to pick a long-term winner and especially when you are so early in the existence of Crypto.
So, by diversifying your investment in different Cryptocurrencies through the Immediate Edge, you can ensure that you own the long-term winners.
What Are Crypto Bundles?
Diversification usually suggests spreading out all your bets on different things.
By creating multiple smaller bets instead of just going with a single bigger concentrated guess, you are actually reducing your chances of losing. In this, you are getting a lot more possibilities to acquire. Here, by saying betting, we mean to say investing and profitable is to make amazing returns on your expense.
Just the way Revix had invested in 50 different internet companies, you also can invest in the Entire Crypto market. You just need to divide your investment amount into the top-performing Cryptocurrencies.
You might not know that the top 10 Cryptocurrencies currently account for more than 72% of the entire Crypto market value. So, when you are investing in the top 10 Cryptocurrencies, you are automatically tracking the broader Cryptocurrency market along with the growth that comes with it.
You simply do not need to risk your entire money in a single Cryptocurrency. Here, in case the Crypto fails, you will lose your whole money.
Why Diversified Bundles Are The Smart Ways To Invest In Crypto
When we are talking about investments, diversification is like a miracle. With this, you will be able to invest for longer terms. Bundles are comparatively low at risk and also a lot easier to hold onto, as they are less volatile than Ethereum and Bitcoin.
When it comes to the returns, the Crypto bundles like Ethereum, Smart Contracts, and Top 10 have outperformed the major individual Cryptos.
The best part is that diversification always works in each investment class around the globe. So, when it is working in the Crypto space, there should be no surprise in that.
Here, we would like to talk about another example.
Long back, when the banking system was not introduced, people used to store their money and other assets like gold in their homes. They used to divide the assets and store them in different places.
The benefit is that, in case any evil individual comes to loot, they will be able to save at least some of the assets.
In the same way, when you are investing in different Cryptocurrencies and diversifying your investment, you are holding the opportunity of earning some considerable return, although many of them fail to earn returns.