The Power of 1%
If you’re like me, you’ve spent countless hours wondering what life would be like had you just bought Apple, Google or Amazon stock early on. My irritated eye-rolls increase with every reading of any one of the countless articles beginning with a regaling of the overall lifetime performance of these mammoth companies. Visions of my Tuscan vacation villa disappear as I console myself with the reminder that hindsight is always 20/20. The interesting thing is I had a feeling early on about many of these companies. I knew they were onto something — I just didn’t take any action.
I have that same feeling in regards to cryptocurrency. The problem is I’m traditionally not one who is willing to undertake substantial risk. That is where my aversion to cryptocurrency has kept me at arm’s length. It is the significant volatility that’s kept me away, yet the amazing potential that’s kept me intrigued.
Also intriguing is blockchain, the technology that drives cryptocurrency. It’s smart. And in a time with so many large, high-profile data breaches, the public’s corresponding trust in large companies to keep their information safe plummets. Blockchain provides a much safer way to transact. Because of this, many predict it has the potential to transform the world as we know it.
Cryptocurrency transactions are significantly different from traditional money exchanges in that they’re decentralized. There’s no central bank in charge. Also, they’re an improvement over traditional means since everyone can access this technology and the transactions are immediate. No more waiting days or weeks for funds to clear. Perhaps most notable though, is that many argue that this technology could put an end to identity theft, all while significantly lowering the potential for other types of fraud.
The more I learn, the easier it is for me to see my vacation villa in Tuscany reappearing.
What if there were a way to invest in this market while mitigating risk, creating greater diversification, gaining market exposure and keeping costs low?
This is where I feel we at Isonex Capital are onto something.
IX15 is the world’s first tokenized equal-weighted cryptocurrency index fund which rebalances its holdings of the top 15 cryptocurrencies every 30 days. Investors in Isonex aren’t just investing in an idea that promises one day to be valuable. Since Isonex is an index fund, there’s value on day one in IX15 tokens because the underlying holdings are already worth money.
This is where the power of 1% comes into play, and my risk-averse persona breathes a sigh of relief. Isonex has backtested the performance over the last five years, showing investors of all kinds that merely incorporating 1% of IX15 into a traditional 60/40 stock bond portfolio would have yielded an additional 20% return with broadly the same risk profile.
What does “broadly the same risk profile” mean?
Want to know more? Read the Isonex lite paper!
While 1% of my overall traditional investment portfolio feels inconsequential to me, a 20% increased return does not. It feels like a no-brainer to get myself in on the potential of the cryptocurrency market in a smarter way, without subjecting myself to the volatility of buying holdings in that market and sitting on them.
If you’re like me and buying low is one of your investment strategies, then the fact that this hasn’t exactly been a strong year for the cryptocurrency market is even more motivation to get in now.
So just what does that look like? Picking one or more cryptocurrency coins, dumping a designated amount of money into each and hoping for the best? Sure, many people try investing this way — I know lots of them. I’ve even tried that a time or two, with no success.
Instead, Isonex Capital makes sure the tokens you purchase represent the top 15 cryptocurrencies and assures the holdings are equally balanced every 30 days by selling outperformers and buying underperformers. That’s similar to how my current traditional portfolio is managed. By including IX15 in your portfolio, not only will you gain exposure to a broader market, but also the liquidity will be better as you transact with the smart contract, all while keeping overall risk low.
I know it sounds good. Want proof? Have a look at the math and the backtesting for yourself. Learn more about Isonex Capital and what we are doing at www.isonex.io. Read the white paper for yourself while you’re there. Sign up for our newsletter through the website. Take some action. Make your own decision about whether or not we are onto something. And while you’re pondering such things, I’ll be Googling the commission structure for Italian realtors in Tuscany.
**Steve Warneke is the Digital Marketing Manager for Isonex Capital.