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The DeFi Chronicle: 4 Crypto index investing ideas to make you money
Children. Gather around the fire because I want to tell you a story. There once was a time when people invested in the stock market and picked individual stocks. Their fortunes were decided by the fate of these stocks. Some grew incredibly wealthy by picking the right stocks at the right time. Others went belly up as their stocks nosedived into oblivion.
Of course, this was a reality before the explosion of the mutual fund/index fund/and ETF (exchange-traded fund). It required research, decision-making, fortitude, and some luck. Luckily, we don’t have to worry about the stress of picking stocks today with all of the indexing options at our disposal.
For anywhere from a zero to a large annual fee, we can invest in these equity pools to own a basket of stocks and protect our portfolios from wide gyrations occurring with individual equities. History has proven that index investing outperforms the average stock-picker. Don’t get me wrong. There are exceptions.
This begs the question: can we take an indexed approach to crypto? Perhaps more importantly, does it even make sense in crypto?
The case for diversification in crypto
As an asset class, crypto is still in its infancy. We use historical data to try to justify our arguments and…