Circle is going after fresh entrants to the cryptocurrency trading market with a new tool that allows them to invest in multiple coins as once. This feature is different than an index fund in a few crucial ways, perhaps most importantly being available to everyday investors not just the rich and trading professionals.
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Buy the Market
Circle Internet Financial Ltd., the Goldman Sachs-backed Boston-headquartered company that acquired Poloniex earlier this year, has announced a new feature on Tuesday called “Buy the Market.” It allows users to buy seven assets at once including BTC, BCH, ETH, ETC, LTC, ZEC and XMR. Aiming for simplicity, all a user has to do to create a crypto portfolio with this feature is to enter the amount of USD they want to invest and the app will automatically calculate and distribute the investment sum according to each asset’s market cap.
This type of automatic or passive management investment tool will most likely be compared to existing crypto index funds. However, it is different in a few ways as it is just a technical feature allowing to buy a number of assets at once with one click not a real fund. These include no management fees, no re-balancing when market caps change, and a very accessible minimum investment sum of just $1.
Better Than Crypto Index Funds?
When comparing to crypto index funds such as those offered by Coinbase or Bitwise, the first thing to pop out is that the new Circle feature is available to all its normal users, not just to so called accredited investors. To be considered an accredited investor in the US, an individual must
