Crypto Indices and Advanced Crypto Trading Strategies

If you’re looking for more advanced crypto trading strategies, you’re in the right place! 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 technology and scalable infrastructure, managing the entire lifecycle of the index. So what is Trakx Solutions? And what do they allow?

Trakx Solutions allows you to create custom baskets of cryptocurrencies, and you can choose the components, their weight and the automatic rebalancing strategy. This allows for easy diversification, passive control, good risk management, and, above all, 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 offers a wide range of crypto indices called Crypto Tradable Indices (CTIs). Each crypto basket is made of components selected according to 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. Here too, the possibilities are limitless, because for some strategies you may prefer single cryptocurrencies, such as the BTC Momentum CTI, while for others you may prefer multiple cryptocurrencies, for example with a possible Top 20 Crypto Index.

2. Select the weight of each component

The second step is to choose the crypto index fund’s weight. Basically you have to choose the percentage of each component. There are several weight models. For example, you can choose an equal weight, a market cap weight, a custom weight, and more.

3. Select 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 any rebalancing method you prefer. In fact, the BTC Momentum Crypto Index, for example, is based on smart beta investment strategies and created to limit risks and seize market opportunities. This means that it automatically increases and decreases exposure to Bitcoin based on market trends.

A Practical Example

Let’s imagine that your company wants to invest in crypto and create a portfolio consisting of Bitcoin (50%), Ethereum (30%) and Solana (20%). This is an example, but you will need to create multiple wallets, do multiple transactions, pay fees, open an account also on a traditional exchange, periodically rebalance the portfolio (the default is once a month), and more. With Trakx Solutions, the only thing you need to do is answer the following questions:

1) What are the components of the crypto index fund?

2) What is the percentage of each component?

3) How do you want to rebalance the assets?

How to get started with Trakx Solutions?

The Trakx team is always available to create new crypto index funds for various partners, so let’s explore in more detail how to proceed with Trakx Solutions.

1. Institutional & Businesses – Customized Crypto Index Solutions

Specifically for institutional and financial brokers who already have their own advanced crypto investment strategy, Trakx offers 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 just for your clients or make it public and tradable on the Trakx platform as well. Contact Trakx to start working together.

2. Influencers and 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 build your first one, so you can create your own non-discretionary advanced crypto trading strategy which is available to your followers or community members. With their Crypto Index Manager Tool, you can create a new custom crypto index fund, implementing an advanced crypto index trading strategy and good 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 several 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 Good risk management: Reduce the risks of possible crashes of single cryptocurrencies. In Web3 they are unfortunately common. Highly Compliant: Trakx is registered with the French AMF & ACPR, and is one of the most highly 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 anytime, 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 investment strategies with Trakx Solutions.

About Trax

Trakx is a global Fintech company 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 bridge the gap between Institutional brokers and communities, between traditional finance and DeFi.

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