One of the leading providers of online foreign exchange trading, as well as other related services, has announced the introduction of a new cryptocurrency basket for its retail investors. The product will include five different cryptocurrencies, including Bitcoin.
Bitcoin Included in a Retail Trading Basket
FXCM Group, commonly referred to as FXCM, is a well-known international provider of CFD trading, exchange trading, cryptocurrencies, and other related services. Today, the company announced the addition of a new cryptocurrency basket that will be made available to its retail customers.
The product is called CryptoMajor, and it includes Bitcoin, XRP, Litecoin, Bitcoin Cash, and Ether.
The idea is for customers to be able to purchase multiple digital assets at once, without having to worry about managing them independently.
The main difference between CryptoMajor and other products of the kind is that the former doesn’t give preference to any cryptocurrency in the basket. In other words, each coin in the mix is weighted equally.
In an announcement, Brendan Calla, the CEO of FXCM, said:
“Trading a basket of cryptocurrencies means our users are freed from the hassle of constantly monitoring the markets. CryptoMajor therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into crypto trading but don’t want to risk too much overexposure.”
Should You Really Diversify, Though?
Diversification is undoubtedly an important aspect of investing in order to keep one’s trades hedged. However, when it comes to the cryptocurrency market, it’s definitely worth thinking twice before taking on any exposure to altcoins.
While 2019 has been fairly positive for the major altcoins, despite decreases in the second half of the year, looking at the bigger picture reveals an entirely different sentiment.
Since their all-time high values back at the end of 2017 and the beginning of 2018, most of the altcoins have lost major chunks of their value.
As CryptoPotato reported back in June, a trader had invested 50 BTC in 50 different altcoins, putting 1 BTC in each one of them in mid-to-late 2017. At the time of the report, he stated that their current values ranged from 0.02 BTC to 0.3 BTC each. In other words, his losses were in the range of 70% to almost 100%.
In other words, it’s important to be very careful when putting your money into various cryptocurrencies, and it’s paramount to manage them properly.