Crypto Index SIP Plan

14 Oct 2020
"A systematic investment plan for investing in a curated portfolio of 11 cryptos diversified by use case"
 Risk: Moderate
 Investment Type: Monthly
 Volatility: -10% to +30% YOY
 Investment Horizon: Long Term

Just like you can get exposure to equity markets by buying an index fund and investing in stocks in a passive way, our mutual fund styles investment option is a great option for passive investors to get exposure to cryptocurrencies. However its not just an index fund of top 20 cryptos (like benchmarked Crypto20 token), it is made of up handpicked cryptos that help diversify the portfolio better than a market capped fund. To get best returns, dollar cost averaging is recommended for this strategy and hence this plan requires monthly investment of smaller amounts rather than one single investment.

Get exposure to crypto returns with broad, diversified risk.

If you are a passive investor looking to buy buy into crypto right away, one of the best things you can do is invest in not one cryptocurrency but an index like fund made of different cryptocurrencies. Investing in our index fund styled

  • Increased potential upside due to exposure to different cryptocurrency and token use cases
  • Reduced potential risk exposure due to diversification across use cases. If you buy into 5 different private currencies, your risk is high since they have the same underlying factor risks
  • No wait period to make crypto a part of your portfolio - Unlike our value investing fund, your bot will buy the portfolio constituent cryptos for you on the same day that you make investment into this fund.

Diversified by use case

One of the differentiating features of Botsfolio crypto mutual fund is that the constituents are picked up on the basis of extensive back-testing for correlation and the portfolio is diversified by crypto use cases. The research literature from factor based investing suggests that a good way to create portfolio of highly correlated assets such as cryptocurrencies is to diversify by underlying factors which in turn can be best achieved by different use cases. While most cryptocurrencies move together coupled, factors at play for adoption of smart contracts are very different from factors that lead to wider adoption of say privacy based currencies or tokens used for prediction markets for instance.

How to start crypto trading bot for Binance

Botsfolio currently supports only Binance integration. With Botsfolio you don’t have to configure anything.
  1. You just choose how much money you want to allocate to a particular strategy.
  2. Link your Binance account to Botsfolio with API keys.
  3. Crypto trading bot starts executing trades from your Binance account.