An application used for trading cryptocurrency in retail, Invstr has recently published a cryptocurrency index for their platform, allowing it’s users to follow cryptocurrency market.
According to information provided by the press release, Invstr’s crypto index will allow its users to track price fluctuations of the crypto market and make price comparisons, of certain cryptocurrency pairs. The index will contain an assortment of digital asset categories, these include asset, payment and utility tokens.
Cryptocurrencies available on the application will be reviewed quarterly, which allows for the inclusion of newer and stable crypto coins to remain on the app while removing suspended or unstable cryptocurrencies from the index. The cryptocurrencies that can currently be found on the Invstr app are, Bitcoin (BTC), Bitcoin Cash (BCH), EOS, Ethereum (ETH), Litecoin (LTC).
Invstr has taken the time to analyze the benefits of holding cryptocurrency in a diversified portfolio. The analysis revealed that a modest exposure of cryptocurrency in a diversified portfolio can both improve the return of the portfolio along with reducing the volatility of its returns.
By selecting the appropriate weightings for the index, the Invstr Crypto index separates itself from traditional market-capitalization weighting methodologies and instead utilizes the volatility of each of the constituent parts.
According to the CEO of Invstr, Kerim Derhalli,
“Traditional indices measure the impact on the asset class, not an investor’s portfolio. If you are a large fund manager you want to know what impact you will have on the market when you enter or exit an asset class. This is not a relevant consideration for smaller investors who want to know what the impact will be on their portfolios. The Invstr Crypto Index addresses this by using weightings that optimize risk-reward based on the volatility of the constituent assets”
Invstr’s new crypto index will be free to use by anyone who’s installed the Invstr app onto their mobile phones.