Start Investing in Crypto Index Funds with Trakx

The crypto market is complex, with high volatility and numerous risks. However, with solid knowledge and advanced tools, you can implement sound risk management and seize opportunities while reducing risks. A popular way to start investing in an advanced and more controlled way is by using crypto index funds, customized crypto baskets that focus on specific market segments or strategies and allow easy diversification, sound risk management, automatic rebalancing, and more. Trakx, an innovative fintech based in France, is the crypto trading platform that offers the largest selection of crypto index funds, named Crypto Tradable Indices. In this detailed guide, we’ll analyze the Trakx platform to understand how they are setting new standards for crypto investment by making institutional-grade strategies available for everyone.

What is Trakx?

Trakx is the leading platform for crypto-index trading, and it was born in France in 2019, founded by Lionel Rebibo (CEO), Matthieu Le Berre, Gary Rebibo, and Edouard Lavidalle; Laurent Barocas joined the team in 2020. The mission of the platform is to provide advanced investing solutions and crypto trading strategies, once reserved only for institutional investors, to everyone. It is the new frontier in crypto investing and allows investors to gain exposure to specific market segments without hand-picking individual cryptocurrencies. How do Crypto Tradable Indices (CTIs) work?

Crypto Tradable Indices (CTIs)

Crypto Tradable Indices (CTIs) are proprietary crypto baskets available on the Trakx platform that focus on specific market segments or investing strategies. They allow investing in multiple crypto assets with a single investment, making it easy both for new and experienced traders to get exposure over a specific sector, such as RWA, AI, Memes, DeFi, and more. Additionally, some crypto index funds implement advanced strategies based on smart beta models, aiming to generate higher returns while allowing for sound risk management practices. Let’s explore their benefits more in detail.

Advanced Diversification

By trading Trakx’s crypto index funds, investors can achieve advanced and easy diversification and reduce the risks correlated to individual poor-performing digital assets. To exemplify the importance of diversification, we can use the case of Terra Luna: If you heavily invested a large amount of your funds in that cryptocurrency, once it collapsed, you could have lost all of your money. Conversely, by spreading your investment among multiple digital assets, you can reduce the risks and obtain holistic exposure over a specific crypto sector. Diversification is crucial for every investor: never underestimate it for implementing sound risk management practices.

Automatic Rebalancing

One of the key advantages of crypto indices is the automatic rebalancing feature. Instead of manually rebalancing your portfolio, which takes a consistent amount of time to research and trade, Crypto Tradable Indices are rebalanced periodically based on the pre-defined rules for each of the CTIs. It removes the need for constant monitoring and manual intervention, allowing you to save time and effort while keeping your portfolio aligned with your long-term goals. Additionally, automatic rebalancing allows you also to save money on trading fees because by manually rebalancing, you should execute multiple transactions over different blockchains, bringing relevant costs. It also helps to avoid human error, suppress any irrational psychological behavior, and have your portfolio aligned with quantitative analysis and strategies.

Advanced Investment Strategies

With Crypto Tradable Indices (CTIs), investors can implement advanced and sophisticated strategies that are available only to institutional investors and financial institutions. With the BTC Momentum CTI, for example, swing traders can avoid manual trades based on the market’s indicators and delegate the rebalancing to the Trakx algorithms. By analyzing indicators with sophisticated algorithms, some smart beta indices are rebalanced automatically to increase and reduce the crypto allocation of the portfolio based on market trends, allowing you to implement strategies such as momentum, value, and more, automatically, with peace of mind. With smart beta strategies, investors can aim to obtain higher returns while minimizing risks and exposure during market downturns.

Effective Risk Management

Risk management is inherently implemented in crypto index funds, using advanced diversification, sophisticated investment strategies, automatic and periodic rebalancing, a best-in-class asset security, long position only, no lending, and backing the cryptocurrencies of the index with a 1:1 ratio to the underlying digital assets. It ensures the value of the index is always based on real collateral, guaranteeing high liquidity, transparency, and security, also reducing the risks linked to price manipulation and unsustainable price spread between buy and sell orders. In short, Trakx’s Crypto Tradable Indices allows investors to have peace of mind and an always-aligned exposure to their investing strategies and goals.

Trakx emphasizes effective risk management by offering products that are 1:1 backed to underlying assets, with only long positions and without lending, ensuring that the value of the index is always based on real collateral. This transparency and security help reduce risks associated with price manipulation or asset liquidity, offering traders peace of mind.

Tradability 24/7

Unlike crypto ETFs traded in traditional markets, such as the BTC ETFs and the ETH ETFs, Crypto Tradable Indices are available for trading 24/7 without interruption. It allows investors to trade during their preferred hours and amplifies the market opportunities for day traders. You don’t need to worry about market hours, and you can trade whatever you want. It allows you to seize day trading opportunities effectively and reduce risks during market drops since you’ll be able to open or close positions quickly. Consequently, crypto index funds allow the implementation of sophisticated investing and risk management strategies, typical of traditional ETFs, while ensuring 24/7 tradability, liquidity, and market access, typical of crypto products.

The $TRKX Token Launch is coming!

The Trakx platform allows you to stay at the forefront of crypto investing and set new standards for digital assets trading. Additionally, the platform is launching its own native token, $TRKX, in October. The token will be available on the most reputable and well-known launchpads of the crypto industry, such as MakerDAO, Bit2Me, and more, to be announced. It’s a great opportunity to join the Trakx ecosystem and unlock even more benefits on the trading platform, such as discounted trading fees, staking, customized support, priority access to new products, and additional benefits and perks. The leading platform for crypto-index trading is waiting for you.