One of the leading providers of online foreign exchange trading, as well as other related services, has announced the introduction of a new cryptocurrencies basket for its retail investors. The product will include five different cryptocurrencies, including Bitcoin.
Bitcoin Included In A Retail Trading Basket
FXCM Group, commonly referred to as FXCM, is a well-known international provider of CFD trading, exchange trading, cryptocurrencies, and other related services. Today, the company announced the addition of a new cryptocurrency basket that would be available to its retail customers.
The product is called CryptoMajor and it includes Bitcoin, Ripple, Litecoin, Bitcoin Cash, and Ether.
The idea is for users to be able to purchase multiple digital assets at once, without having to worry about managing them independently.
The main difference between CryptoMajor and other products of the kind is that it doesn’t give preference to any cryptocurrency in the basket. In other words, each coin in the mix is weighted equally.
Commenting on the matter was Brendan Calla, CEO at FXCM, who said:
“Trading a basket of cryptocurrencies means our users are freed from the hassle of constantly monitoring the markets. CryptoMajor therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into Crypto trading but don’t want to risk too much overexposure.”
Should You Really Diversify, Though?
Diversification is undoubtedly a paramount part of investing in order to keep your money hedged. However, when it comes to the cryptocurrency market, it’s definitely worth thinking twice before receiving any exposure to altcoins.
While 2019 has been fairly positive for the major altcoins, despite the decreases in the second half of the year, looking at the bigger picture reveals an entirely different sentiment.
Since their all-time high values back at the end of 2017 and the beginning of 2018, most of the altcoins have lost a major chunk of their value.
As Cryptopotato reported back in June, a trader had invested 50 BTC in 50 different altcoins, putting 1 BTC in each one of them in mid/late 2017. At the time of the report, he revealed that their current value ranges between 0.02 BTC and 0.3 BTC each. In other words, his losses are in the range between 70% to almost 100% on the different altcoins.
In other words, it’s important to be very careful when putting your money in various cryptocurrencies and to manage them properly.
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Source: Crypto Potato