If you’re looking for more advanced crypto trading strategies, you’re in the right place, fortunately! Trakx, the leading provider of crypto index strategies, has just announced its new Trakx Solutions program. Institutional investors, DAOs, communities, influencers, retail traders, and investors are invited to create new advanced crypto trading strategies with their tech and scalable infrastructure, managing the whole lifecycle of the index. So, what are Trakx Solutions? And what do they allow for?
Trakx Solutions allows you to create customized baskets of cryptocurrencies, and you can choose the components, their weighting, and the automated rebalancing strategy. It allows for easy diversification, passive control, sound risk management, and, most importantly, peace of mind. That’s not all. Institutional crypto investors, exchanges, and financial brokers can create the most advanced strategies (alpha, beta, and smart beta strategies) based on momentum, sector rotation, or similar advanced strategies. The possibilities are endless with Trakx Solutions.
Trakx Solutions: Providing Advanced Crypto Index Strategies
Trakx already provides a wide range of crypto indices called Crypto Tradable Indices (CTIs). Each crypto basket is made of components selected by theme, specific crypto, or investment strategy. For example, some of the most traded are the AI, the RWA, the Memes, and the BTC Momentum CTIs. But how do you create a custom crypto index fund with Trakx Solutions? First, let’s understand how a crypto index works.
1. Select the Components of the Crypto Tradable Index
The first step is to select the cryptocurrencies of the crypto index. Also here, the possibilities are unlimited, as for some strategies you might prefer single cryptocurrencies, like the BTC Momentum CTI, while for others you might prefer multiple cryptocurrencies, for example with a possible Top 20 Crypto Index.
2. Choose the Weight of Each Component
The second step is to choose the crypto index fund’s weighting. Basically, you have to select the percentage of each component. There are various weighting models. For example, you can choose an equal weighting, a market cap weighting, a custom weighting, and more.
3. Choose the Rebalancing Model
The third and final step is to decide on a rebalancing strategy. Generally, most of Trakx’s Crypto Tradable Indices (CTIs) are rebalanced on the last day of the month, but you can choose whatever rebalancing method you prefer. In fact, the BTC Momentum Crypto Index, for example, is based on smart beta investing strategies and created to limit risks and seize market opportunities. It means that it automatically increases and decreases exposure to Bitcoin based on market trends.
A Practical Example
Let’s imagine your company wants to invest in crypto, creating a portfolio composed of Bitcoin (50%), Ethereum (30%), and Solana (20%). It’s an example, but you would need to create various wallets, make multiple transactions, pay fees, open an account also on a traditional exchange, rebalance the portfolio periodically (the standard is once a month), and more. With Trakx Solutions, the only thing you need to do is to answer the following questions:
1) What are the components of the crypto index fund?
2) What is the percentage of each component?
3) How would you like to rebalance the assets?
How to Start with Trakx Solutions?
The Trakx Team is always available to create new crypto index funds for various partners, so let’s examine in more detail how to proceed with Trakx Solutions.
1. Institutional & Businesses – Customized Crypto Index Solutions
Specifically for institutional and financial brokers that already have their own advanced crypto investing strategy, Trakx provides customized solutions. Some strategies, as they do in their partnerships with Martial Eagle and OpenTrade, are recreated by copying the NAV through API. You can choose to keep the crypto index private only for your clients or make it public and tradable also on the Trakx platform. Contact Trakx to start collaborating together.
2. Influencers & Communities – Crypto Index Manager Tool
If you are an Influencer, a DAO, or a Community, and you don’t already have an advanced strategy, Trakx can help you to build your first one, allowing you to create your own non-discretionary advanced crypto trading strategy available to your followers or community members. With their Crypto Index Manager Tool, you can create a new customized crypto index fund, implementing an advanced crypto index trading strategy and sound risk management. In this case, you can contact the Trakx Team through their website and create crypto index funds for your community.
What are the Benefits of Crypto Indices?
Trakx’s crypto indices, called Crypto Tradable Indices, have various competitive advantages compared to traditional single investments in specific cryptocurrencies with multiple crypto wallets and intermediaries or compared to the new Bitcoin and Ethereum ETFs. What are the competitive advantages of crypto index trading?
- Easy diversification: Buy a basket of cryptocurrencies with a single click and a single wallet
- Sound risk management: Decrease the risks of potential collapses of single cryptocurrencies. In Web3, they are sadly common.
- Highly Compliant: Trakx is registered with the French AMF & ACPR, and it is one of the highest-compliant platforms in Europe.
- Best Practices in Security: The underlying assets are stored in the best custodians, such as Fireblock and Coinbase.
- Tradable 24/7: Unlike crypto ETFs, Crypto Tradable Indices are available at all times, anywhere, and without interruption.
- Passive Management: Deciding on an automatic rebalancing strategy can give you peace of mind and rational management.
- Advanced Crypto Trading Strategies: Implement the most sophisticated crypto investing strategies with Trakx Solutions.
About Trakx
Trakx is a global Fintech company that is setting new standards for crypto investing. With Trakx Solutions, they can provide both Institutional investors and communities with the most advanced crypto investment strategies, creating a more inclusive and fair industry. Crypto Tradable Indices are the ultimate frontier in investing, and Trakx Solutions allows everyone to create their own non-discretionary advanced crypto trading strategies. In this way, they’re bridging the gap between Institutional brokers and communities, between traditional finance and DeFi.
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