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 methodology by Messari and assist us when building our diversified portfolio.
Payments / Store Of Value - primarily used as Money, Payments and Store-of-Value
Infrastructure - serves as the protocol foundation for various use-cases
Financial Networks - dedicated to cryptoasset financial services
Services - specific applications implemented on blockchain-networks
Media and Entertainment - from social networks to content generation
Crossgate Capital's Portfolio By Sector And Category
Our objective is to deliver returns to investors by investing in cryptocurrencies where we consider there is a significant opportunity for growth.
We are heavily weighted to Bitcoin but have greater breadth by investing across the leading cryptocurrencies.
As part of this process, we continually review the weightings of individual assets and monitor other assets which may warrant inclusion.
We review our portfolio mix by category and sector (which indicates the specific solution(s) provided by a cryptoasset network).
Current Targeted Weightings By Category And Sector
To mitigate any unnecessary transaction fees or tax implications, we re-weight the portfolio through purchases as opposed to selling any of the cryptocurrencies.