The cryptocurrency market, which includes altcoins, has always been known for its incessant volatility and the nature of the market- mostly due to the small market caps of most of the assets. The volatility could also be ascribed to the 24/7 operational hours of centralized as well as decentralized exchanges. Along with being quite a risky approach, the trading of crypto can also be a very time taxing process. It is an overwhelming task and a massive barrier of entry for most of the investors that have been determining which tokens they should be investing in.
Altcoin Indexes- Profitable In the Long Run?
For all those investors, investing in an index could be quite a profitable alternative for gaining exposure to some of the hottest altcoins currently in the cryptocurrency market. Index Cooperative is one such decentralized autonomous asset manager that allows most investors to create a custom index filled with tokens through smart contracts. Several of the most actively traded indexes did originate from Index Coop- which includes the DeFi Pulse Index.
Along with altcoins, NFTs have been one of the fastest-growing sectors in the last year- but finding the next big crowd-pleaser does seem to be quite a monumental challenge as dozens of new NFT projects seem to be launched on a pretty daily basis. One alternative for gaining such exposure is the NFT index- a basket that routinely contains 11 different tokens that include Polygon, The Sandbox, ApeCoin, and Decentraland.
For those who have been looking for some exposure to the altcoin baskets in a far more regulated environment, eToro would be the best bet for them. It is a multi-asset brokerage firm that does provide access to most of the smart portfolio options that seem to be doing pretty well over the years.
