There are over ten thousand different cryptocurrencies scattered across nine hundred different exchanges available on the market. Each asset carries its own promise, technology, and potential for growth. For any investor, especially one new to the crypto space, making sense of this chaotic landscape and choosing where to invest can be daunting.
Enter bundle investing, a strategy that simplifies the decision-making process by grouping multiple cryptocurrencies into a single investment package tailored to market conditions (so you don’t have to time the market).
What Is Bundle Investing?
Bundle investing is when you purchase a set group of diversified assets as a single package (or “bundle”). Instead of painstakingly researching the intricacies of each project, analyzing market trends, or making individual purchase decisions, you can simply buy a ready-made bundle.
Curated by the Bake team, each Smart Bundle offers a carefully selected a mix of assets that complement each other and fit a certain narrative. This ensures that each bundle provides you with a balanced portfolio with an optimized risk-reward ratio.
Think of Smart Bundles like buying a “gift basket“ of assets. When you walk into a store during the holidays, you are presented with a multitude of different items for sale — chocolates, wines, toys, and more. Instead of purchasing each item separately or risk buying a single substandard item, you can buy a gift basket (or bundle) comprising a complementary mix of items.
This approach is not entirely new in the financial world. In traditional stock markets, mutual funds have long offered a way for investors to buy a collection of stocks in one go. However, in the crypto world, investment bundles are only just starting to gain traction. With the emergence of more subsections of the crypto industry, the demand for simplified and curated investment strategies is increasing.
For example, let's consider Bake’s "Next-Gen Blockchain Innovators Bundle," which focuses on newer cryptocurrencies like DOT, ADA, and ATOM. Normally, you would have to go through the process of individually researching and then buying each of these coins on different exchanges.
With the Next-Gen Blockchain Innovators Bundle, you’ll find, at a glance, a concise yet deeply researched analysis of the coins in the bundle description. You can then buy the bundle from the same screen in just a few clicks.
Why Is It Important to Diversify in Crypto?
One of the key advantages of bundle investing is that it enables you to diversify your portfolio. By spreading your investments across different assets, you reduce the impact of losses and maximize your chances of gains.
But why is diversification especially crucial in the crypto world?
Crypto Is Still Young
First, the crypto market is still relatively young. Unlike traditional markets with established histories and patterns, cryptocurrencies are charting new territories. While this novelty carries the potential for high rewards, it also holds the risk of significant losses.
Sentiment and Volatility
Second, the crypto market is heavily reactive. From technological developments and regulatory changes to market sentiment and media coverage, a single piece of news can send prices soaring or crashing. By diversifying, you're not just hedging against market volatility but also unforeseen events that might affect a particular cryptocurrency.
The Number of Cryptocurrencies
Lastly, the sheer number of cryptocurrencies available presents both a challenge and an opportunity. With thousands of coins and tokens in the market, picking the 'next big thing' is like trying to find a needle in a haystack. Diversification allows you to cast a wider net, capturing the growth of multiple assets and reducing the chances of missing any single opportunity.
The Benefits of Bundle Investing
Apart from diversification, there are several other benefits to bundle investing in cryptocurrency. Such benefits include:
Ease of Investment
One major advantage of Smart Bundles is the simple, user-friendly investment experience. You bypass the hassle of registering for multiple exchanges and managing multiple account passwords. Instead, you can access all your investments in one place, streamlining the management and tracking of your assets.
Support Projects You Align With
Smart Bundles on Bake follow unique narratives, giving you the freedom to choose the ones that align with your beliefs and interests before investing. Whether you're passionate about decentralized finance (DeFi), environmental sustainability, or technological innovation, there’s a bundle for everyone.
Smart Bundles are created by the Bake team, who analyze market trends, past price histories, the potential of projects, and the future outlook. This ensures the bundle represents a balanced mix of cryptocurrencies based on the narrative you align with.
Access to a Wider Variety of Assets
Bundle investing allows you to invest in a wider variety of cryptocurrencies that may not be easily accessible on popular exchanges. This opens up opportunities for exploring different coins and discovering new investment prospects.
Getting Started With Bundle Investing
Bundle investing offers a simplified, diversified, and curated path to navigate the dynamic world of cryptocurrency.
For those ready to get started with Bundle Investing, head to the Bake mobile app to discover which Smart Bundles are available.
Each Smart Bundle has an easy-to-read narrative that describes the investment idea behind it. If the investment idea aligns with your goals and ideals, you can then purchase the assets within the Smart Bundle in just a few clicks.
DISCLAIMER: Please note that the information on this blog and in any articles posted on this blog is for general information only and should not be relied upon as financial advice. Cake Pte. Ltd., Bake, UAB, and its affiliates (the “Cake Group”) are not licensed financial advisers. You may wish to approach your own independent financial advisor before making any decision to buy, sell or hold any product and/or digital assets mentioned in this blog.
Any views, opinions, references, assertions of fact and/or other statements are not necessarily the views held by the Cake Group. The Cake Group disclaims any liability whatsoever that may arise out of or in connection with such statements. Always do your own research before investing in any financial assets and consult a qualified financial advisor if necessary.