Financial services giant PayPal recently announced that it will allow its 200 million US users to buy, sell and store crypto assets on its platform, starting over the next few weeks with bitcoin, ethereum, bitcoin cash and litecoin.
What’s more, the firm said it would enable its 26 million merchants to accept crypto as a payment method, starting in early 2021.
It is likely the biggest development of 2020 for crypto. It represents a major levelling-up of the asset class and is one of the many reasons why the crypto market is up over 130% in 2020 (after a 94% 2019 return).
Revix, backed by JSE-listed Sabvest, allows everyday people to invest in bitcoin, USDC (a stablecoin fully backed by the US dollar), a 1:1 gold-backed crypto token called Pax Gold and three ready-made diversified crypto baskets called “Bundles”. Crypto Bundles allow investors to track the broader crypto market or a specific sector within the crypto space and are like buying the JSE Top 40 index or S&P 500 in the US.
Sign-up is free, the minimum investment is R500, and there are no monthly fees. You can sell your crypto investment at any time and withdraw your funds. And there are no lock-up periods like there are with other investment funds.
“Buying a single cryptocurrency can be easy if you know which one to buy,” says Sean Sanders, founder and CEO of Revix. “But many people are not confident enough to know which cryptocurrency to back, so buying a Bundle – rather like an ETF or unit trust – takes the guesswork out of it and lets the winners come to you.”
Buying a crypto Bundle rather than a single cryptocurrency makes owning a diversified crypto portfolio more convenient and less risky as you’re not exposed to the price fluctuations of just one crypto asset.
Revix’s crypto Bundles aim to ensure that customers own the largest and by default the biggest, success stories in the crypto space, whatever they may be.
Revix’s Bundles have produced exceptional returns on a year-to-date basis and have outperformed an investment in bitcoin alone.
Top 10 Bundle
The Top 10 Bundle spreads your investment equally over 10 largest cryptocurrencies – which covers about 85% of the crypto market when measured by market capitalisation – with each having a 10% weighting. By default, you are buying the 10 biggest success stories in the crypto space. The weightings are adjusted monthly to ensure no crypto exceeds a 10% weighting.
While bitcoin accounts for about three-quarters of the total crypto market cap, it only accounts for 10% of the weighting in the Top 10 Bundle. And while it’s true that bitcoin has been the star crypto performer in recent months, it’s actually underperformed the broader crypto market over nearly all longer-term time horizons.
In fact, while bitcoin is up nearly 150% in 2020, ethereum, polkadot, litecoin and chainlink are all up well over 300%, having significantly outperformed bitcoin on a relative basis.
These cryptos are all in Revix’s Top 10 Bundle and their returns have bolstered the Bundles’ returns, so having your investment spread over the 10 biggest cryptos gives you exposure to some potential winners in the crypto space without having to guess which ones they are.
In addition, Revix offers two theme-based crypto Bundles which provide exposure to groups of cryptocurrencies which have similar functionality and objectives.
The Payment Bundle provides exposure to the largest five payment-focused cryptocurrencies looking to compete with government-issued fiat currencies to make digital payments cheaper, faster and more global. These cryptos include bitcoin (BTC), ripple (XRP), litecoin (LTC), bitcoin cash (BCH) and stellar (XLM).
Smart Contract Bundle
The Smart Contract Bundle tracks those cryptocurrencies that aim to offer an open-source, public network without any downtime, fraud, control or interference from third parties. Smart Contracts use the blockchain to allow peer-to-peer transactions without the need for third-party verification. This Bundle comprises cryptocurrencies like ethereum that enable developers to build applications on top of their blockchains, much like how developers build mobile apps on top of the Apple mobile iOS operating system. The cryptos in this Bundle also include cardano, tron, neo and EOS.
Revix charges no monthly account or subscription fees, but rather a simple 1% transaction fee for both buys and sells and a 0.17%/month rebalancing fee (which amounts to 2.04%/year) on the total Bundle value held (this fee is not levied on single cryptocurrencies like bitcoin or their Pax Gold token).
Revix’s Bundles offer a few added benefits:
Peace of mind
First, before any cryptocurrency enters the Bundle, Revix evaluates it for security, liquidity, regulatory status and other factors. This ensures it can be held in a safe, secure, and regulatory compliant manner.
Automatic monthly rebalancing
Revix’s algorithms automatically rebalance a customer’s Bundle holdings monthly so that they are equally weighted to ensure that they stay current and capture emerging cryptocurrencies. An equally weighted Bundle ensures that holdings are as diversified as they can be. There are advantages to having a Bundle equally weighted rather than market weighted. In a market-weighted Bundle, more than 75% of your investment would be in bitcoin and ethereum. In the Top 10 Bundle, your bitcoin and ethereum holdings are capped at 10% each, so you get wider exposure to some of the other emerging stories in the crypto space.
Smart price execution
Lastly, Revix offers customers a unique price-routing system enabling customers to obtain the best prices available at the moment of purchase or sale. “We aren’t a crypto exchange, and this means we have the ability to source the best pricing and liquidity for our customers across multiple crypto exchanges at any given time,” says Sanders.
Diversification of the kind offered by Revix’s Bundles is a sensible and easy way for newcomers and seasoned investors alike to get exposure to the crypto asset class.
“Stocks, bonds and real estate are core asset classes for a diversified portfolio but investing in cryptocurrencies and gold may further assist investors to build even more diversified portfolios.”
As the old adage goes, “Don’t look for the needle in the haystack. Just buy the haystack.” It seems diversification in the rapidly changing world of crypto may be even more important than other markets.
How to sign up to Revix
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform enables anyone to securely own the world’s top investments in just a few clicks. Revix guides new clients through the sign-up process, to their first deposit and first investment. Once set up, most customers manage their own portfolio, but can access support from the Revix team at any time. For more information, visit Revix.
- This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing please take into consideration your level of experience and investment objectives, and seek independent financial advice if necessary.
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