Crypto Funding

Crypto funding is mainly done by the Exchange Traded Fund (EFT), which mostly tracks assets, indices, and the price of different digital tokens. Just like stocks, EFTs generally fluctuate on a daily basis.

 EFTs are mainly used to track a single cryptocurrency, a basket of currencies, and other digital tokens.

Some of the benefits of crypto funding include:

  • Diversification in the holding of currencies
  • Low-cost ownership
  • Outsourcing of intensive functions and knowledge

There are two significant types of crypto EFTs.

  • Physical cryptocurrencies that help investors indirectly own them, hence gaining exposure yet preventing the outright risk of the expense and maintenance.
  • A synthetic variant to track crypto derivatives.