A Diversified Portfolio Of The Leading Cryptocurrencies
We consider, a well constructed diversified portfolio reduces the risk that comes with investing in a single cryptocurrency. Whilst we are understandably bullish on Bitcoin and Ethereum and consider them a core part of our portfolio, in such a fast moving sector we believe a diversified portfolio is the best way to invest in this market.
This provides us opportunities to gain exposure to new technical developments and use cases which present themselves in this rapidly evolving crypto landscape.
We have a deliberate strategy to invest in established assets. To be considered for inclusion the crypto asset must have a market capitalisation of at least $500 million as at the date of purchase.
Our portfolio has strong exposure to Bitcoin and Ethereum but has greater breadth by investing in the leading cryptocurrencies, which includes;
How Do You Tell One Cryptocurrency From Another?
For many investors it can be challenging to understand such a diverse ecosystem. With so many different cryptocurrencies to choose from, how can you distinguish one cryptocurrency from another?
Many people buy crypto without knowing what their project actually does. For some investors they invest in Bitcoin, Ethereum or other cryptocurrencies without considering what is their reason for being.
While other investors are influenced by retail hype or short term price movements, we consider the underlying category mix when constructing our portfolio. As specialist investors we have a strong understanding and appreciation of the fundamentals which assists us to allocate capital, in what we consider is an effective manner.
Specialist investors may have their own custom classification system. Crossgate Capital currently uses a number of crypto research and data tools which includes Messari, a leading data and information aggregator for the crypto asset industry.
Messari are focused on bringing transparency to the cryptoeconomy and they provide data that assists informed decision making and investment.
The categories below were created using a methodology by Messari which assists us when building our diversified portfolio.
Includes general payments while others concentrate on payments for a specific use case or industry. This category also includes 'Stablecoins', which attempt to keep their value tied to a peg, like the U.S. dollar.
Infrastructure cryptocurrencies are typically used to pay the computers responsible for running programs on a shared blockchain software network.
Financial cryptocurrencies may help users manage or exchange other crypto assets. More complex financial cryptocurrencies may even seek to replicate financial services allowing users to borrow or lend crypto assets.
Includes providing users with digital identities and link individual’s records from the real world to the blockchain. Examples include crypto asset payments and file management for the healthcare industry.
Media & Entertainment
Seek to reward users for content, games or social media. This can allow users to get paid for creating and publishing content through built-in crypto asset payments.