Index and Passive Investing: A Winning Strategy in Crypto

in #bitshares6 years ago (edited)

The index fund is survives because it bets on winners. The investment is made without research or knowledge outside of the programmatic buying and maintaining of proper balances. The modern Dow Jones Industrial Average contains few of its original holdings. Many of those older companies fell apart or lost a competitive edge. And many small businesses grew to take their position. Over the course of many years, a specific holder can make a considerable profit even if 50% of the companies ever in the index go bankrupt!

The passive index is an investment in an idea – that stability would come from diversification of risk and that long term value would accrue to winners in a competitive and free market. When the exchange traded fund (ETF) was introduced to the American public it was a historic development in global finance - increasing inclusion in the financial system. It is arguably the most effective way for large-scale uninformed investors to participate in marketplaces with informed traders. The ideal application of these principles (stability, value creation, and open exchange) to the cryptoasset investment space will be our Pole Star. Twentix Public Launch: June 2nd 2018.

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Crypto investment is more profitable than others, the advantage that we can is to directly monitor the profit or loss, and the current fear is almost all the price of crypto decreased. I think this is a factor that must be improved so that crypto can be stable, what factors are most influential on rising and falling prices?
thanks @john-robert

Crypto is early stages and speculation is high. There is little correlation between fundamental improvements and price. Hopefully, mature products like index funds can help provide a higher level of sophistication and stability to this ecosystem.

I am a Brazilian and I live in Brazil most of the time. Will I be able, as an alien, to be part of this ETF? I love that idea because of my minimum knowledge about cryptos...

@ronaldovelino. The bitshares ecosystem is open to everyone. You will be able to include twentix in your portfolio easier than acquiring physical silver.

So, it would be like accessing an exchange and simply buying shares of a mutual fund. Will I need a wallet or the shares will be at twentix? I am really liking this idea.

Yes. Twentix is a cryptographic asset running on a public blockchain platform (bitshares). You can hold twentix yourself in a bts wallet (which we spoke about before, do you remember the account name?) or contract with a service provider to custody your assets if you prefer.

DaoStreet recommends holding your cryptoassets in wallets that you control the private keys for. Individual sovereignty is the underpinning of this entire movement of freedom and decentralization.

Of course. Thank you very much. Let's wait for June 2nd.

If you believe that cryptocurrencies are a new asset class that has some fundamental value then you may wish get into the market. The best way to do this is by investing in a bundle of coins either by direct investment or by buying into a cryptocurrency index fund.

Exactly. An index fund is a way to invest in the future of the entire blockchain asset industry.

I would like to get to a point where I can allocate proportionately say 70% top market cap to 30% new coin with boom potential. This will give both the "can sleep at night" profitability of the top market cap, along with the thrill of the daily fluctuations of the newest currencies.

that can be accomplished in a similar way and is something daostreet is considering offering later this year.

Index investors decide which markets they want to invest in, how much of their money to put in each one, and utilize index funds to put that plan in place.

This is another strength of the index. User flexibility.

Congratulations sir.
You so great man really sir
You my most choice man..... best of luck

Congratulations sir.
You so great man really sir
You my most choice man..... best of luck

Index investing makes it relatively easy to stay consistent. When all you’re doing is picking a few different funds to track a few different markets, there simply isn’t all that much to tinker with. And the index funds themselves will keep right on tracking the same markets, so there’s no risk that some manager will suddenly decide to do something different, forcing you to rethink all your investments.

I strongly agree with your opinion, because of the economy decreases, therefore, we must always help each other, your post very cool with filed opinion accurate. @john-robert

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@john-robert

Good post my best friend @john-robert, hopefully we can be a brother, I like your post and I want to share your post again @john-robert

I share your opinion. I think it is never wrong to at least invest a little money in a revolutional technologie. Many people are simply too lazy and ignore this life changing chance.

Great infromation sir upvote & Resteem Done

Thank you for your continued support of SteemSilverGold

Passive investors look to match the market returns. Instead of trying to pick stocks or time the market, they manage their expected risk and return by dividing their money up between different types of investments.

If If come back to the American public then I think it will make a historic development with global funding again. Do you agree with this @john-robert??

yes. there is a lot of American investment capital that may come into crypto. It is important that they enter legitimate blockchain projects and not private blockchains or worse - internal cash-settled ledgers of accounting.

I am also thinking about it. Hope that it will be happend. Thanks for your information. Continue the post about bitshares.

Post a good, I love it and I want to mengabadikannya @john-robert

Karya yang sangat bagus, pendapat yang sangat bermanfaat Bagi kita semua saya sangat suka .,dengan postingan anda. @john-robert.

Salam dari saya @macphotography

nice post and cool @john -robert i want to share it

nice post and cool @john-robert i want to share it

very good news @john-robert I really like the news

Thanks for the sharing information. Hopefully that you will continue sharing these information to the people. I am waiting when Twentix will launch.

I strongly agree with your opinion, because the economy is declining, therefore, we should always help each other, and recognize each other and your post is very cool with accurate opinions submitted.
@john-robert