With bitcoin recently hitting a new 20 months high and seeing a colossal 25% jump in October alone we seem to be back in a crypto bull market. The largest cryptocurrency is up 90% year-to-date and that puts it well on pace to exceed last year’s 94% gain.
And bitcoin’s not alone. Ether, the second-largest cryptocurrency is up over 200%, while Chainlink and Polkadot – newcomers to the top 10 largest cryptocurrencies – are both up over 500% this year.
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The cryptocurrency market’s 2020 rally has widened the controversial asset classes outperformance compared with traditional markets. Holding bitcoin or a basket of the top 10 cryptocurrencies would have placed you well over 60% ahead of the S&P 500 Index of large U.S. stocks, where a recent slide has trimmed the year-to-date gains to just 5%, after a 27% rise in 2019.
Sean Sanders, the CEO and Founder of crypto platform Revix, backed by JSE-listed Sabvest, explains “Bitcoin is the most well-known cryptocurrency and is often the first cryptocurrency anyone purchases. However, the broader crypto ecosystem has evolved and investors have been handsomely rewarded for investing in a diversified crypto portfolio.”
For investors looking to gain crypto exposure, Revix offers everyday investors the option to purchase bitcoin as a standalone option together with 3 low-cost diversified crypto-index Bundles, making crypto investing as easy as buying the JSE Top 40.
Revix is accessible as investors can get started with an investment of as little as R500, and what’s great is that they can sell out and withdraw their funds at any time after purchase. There are no lock-up periods as there are with other traditional investment funds.
Sanders explains “The cryptocurrency asset class is new and dynamic, and so it’s hard to predict which blockchain projects and cryptocurrencies will be the Amazon or Microsoft-like success stories of tomorrow. If you try to bet or trade, like most newcomers do, and pick individual coins, you could end up missing out on the growth of the broader crypto market.”
He advocates for taking a diversified longer-term view when investing in cryptocurrencies and not to try time the market. According to Sanders, the real-return opportunity when looking at crypto is over many years. Not days, weeks, or months.
There are a few key differences now from prior bull runs in bitcoin, such as in 2017 when the cryptocurrency’s price shot up to about $20,000. There’s been a rapid explosion in the industry’s support infrastructure, from the development of regulated asset custodians to more reliable pricing feeds. This has resulted in big-name institutions like PayPal entering the crypto space which offers a new seal of approval from established companies along with an incentive for other big financial firms to follow suit, in order to avoid getting left behind.
“We’re reaping the rewards of two years of building infrastructure in this space. It’s no surprise that we’re seeing increased adoption and hitting multi-year highs. Every major institution is re-looking at crypto right now and as more big-name investors tune in, the growth of the space could become a self-reinforcing trend.” explains Sanders.
More on Revix’s products
Pax Gold is a 1:1 gold bar-backed crypto commodity where investors can take legal ownership of a fraction of a physical gold bar. The physical gold is securely in Brinks vaults in London, and Pax Gold, like other digital assets, is divisible with a minimum investment of just R500.
The Top 10 Bundle is like the JSE Top 40 or S&P 500 for crypto and provides equally-weighted exposure to the top 10 cryptocurrencies, making up more than 85% of the crypto market.
The Payment Bundle provides equally-weighted exposure to the top five payment-focused cryptocurrencies including the likes of Bitcoin, XRP, Stellar, and Litecoin. These cryptos aim to make payments cheaper, faster, and more global. This is suitable for those who believe crypto as a means of payment will eventually become universal.
The Smart Contract Bundle provides equally-weighted exposure to the top five smart contract-focused cryptocurrencies like Ethereum, EOS, and Tron. Smart contracts have additional functionality built into them, to facilitate payments when certain predefined conditions are met.
What’s great is that Revix’s algorithms automatically rebalance and reconstitute a customer’s Bundle holdings on the 1st of every month so that they are equally weighted and to ensure that they stay up to date with the fast-moving crypto market.
About Revix
Revix brings simplicity, trust, and great customer service to investing. Its easy-to-use online platform enables anyone to securely own the world’s top investments in just a few clicks.
Revix guides new clients through the sign-up process, to their first deposit and first investment. Once set up, most customers manage their own portfolio, but can access support from the Revix team at any time.
For more information, visit Revix.
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing please take into consideration your level of experience and investment objectives, and seek independent financial advice if necessary.
Featured image: Supplied
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