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Bitcoin and Ethereum are profitable than weighted cryptos


www.thecoinrepublic.com 26 July 2021 01:30, UTC
Reading time: ~3 m

  • Cryptos like Bitcoin and Ethereum have outperformed other index funds of DeFi and weighted cryptocurrencies
  • The crypto products have taken the popularity of ETFs and index funds
  • Dolphi Digital indicates that holding Bitcoin and Ethereum is a more profitable and viable strategy

Cryptos are getting more mainstream attention globally. Such digital assets have seen several bullish rallies since last year. And impressive gains have attracted several traders and investors in their dome. Unsurprisingly, investors are seeking to make incredible gains by investing in the crypto market. In the current scenario, there are thousands of such projects available. However, recent data by Dolphi Digital revealed that holding the two largest cryptocurrencies is more profitable than index funds of DeFi or investing in weighted cryptocurrency market capitalization.

Cryptos took the popularity of ETFs and index funds

Over the past couple of decades, it has been observed that exchange-traded funds and index funds remained the most popular financial instruments among investors. This is because these instruments have offered the boon of gaining exposure and their money to specific stocks baskets. Indeed, they have never invested in a few individual stocks that lead to enormous risks.

From 2018, we are observing that such aforementioned trends shifted to the crypto products and sectors. Such products include BITX, this financial investment instrument that tracks the returns of several blockchains. Indeed, these blockchains include Uniswap, Stellar, Ethereum, Bitcoin, Solana, Chainlink, Cardani, and others.

However, to access this many blockchain projects through one weighted market capitalization is an impressive way. Indeed, with such methods, it is easy to negate the risk as well as gain a lot of exposure while having access to a broader range and forms of assets.

BTC and ETH outperformed other financial instruments

Dolphi Digital closely tracks the Bitwise ten performance while comparing it to BTC’s performance. The data shared by the firm has revealed that investing our hard-earned money in Bitcoin and Ethereum is a far more viable and profitable strategy. Notably, it’s at least better than investing in BITX, which is less volatile. 

According to data, individual assets should not get trumped and outperformed by indices. Instead, indices are portfolios having lower risks in comparison to an asset. Hence BTC outperforms such indices in terms of cost should not come unique to the community interested in investing in cryptos.

Crypto market seems will take a u-turn now

Since the beginning of this year, the entire crypto market has seen tremendous growth. As a result, prices in the market skyrocketed to achieve new all-time high levels. However, in mid-May, the market crashed as Bitcoin lost more than 50% of its value, impacting other altcoins.

However, recent technical analysis indicates that Bitcoin retraces its bullish momentum. Therefore, bulls in the market are awaiting another breakout. It is estimated that the investors will see more gains if such an event occurs.

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