Make the most of the market with the Luno Large Cap Bundle
It’s not always easy to choose a great investment. There are a variety of factors that will determine the success of a project and many startups and projects don’t make it, often through no fault of their own.
This is also true in crypto. There are more than 20,000 cryptocurrencies available today, and in such a young industry it’s likely that not all of them will rise to the top.
That’s why many investors prefer to invest in the potential success of an entire technology or industry rather than individual companies, often through an index that tracks the biggest and best performing companies in that sector to give representative returns of an investment in that particular industry or market.
The new Luno Large Cap bundle aims to let you do just that with cryptocurrency, giving you an easy way to invest in the majority of the market with the tap of a button. This bundle updates every quarter, so it always includes the biggest cryptocurrencies for optimal market investment coverage and to ensure it always contains the best performing assets. The Luno Large Cap is also weighted so you always own more of the bigger coins for optimal market coverage. Invest in the future of crypto, not individual coins.
The Large Cap bundle tracks an index called the CoinDesk Large-Cap Select Index (DLCS). The DCLS is designed to measure the market capitalisation weighted performance of some of the largest and most liquid digital assets that meet certain trading and custody requirements, which also updates every three months. The index aims to give investors an easy way to always own up to 70% of the crypto market at the tap of a button.
The Luno Large Cap bundle is currently only available to Labs customers. To enable Luno Labs, please go to the settings of your Luno app.
What’s an index?
It’s a grouping of similar types of investments that investors use to track market movements.
The SP500 Index, for example, shows the collective performance of the largest 500 company stocks in the US. In the same way, the CoinDesk Large Cap Index groups between five and ten of the largest cryptocurrencies by market capitalisation.
To be clear, an Index is not an investment product but rather a way to classify different investments and help investors navigate the market.
CoinDesk is a thought leader in the cryptocurrency industry and knows better than most which cryptocurrency projects hold more promise than others. They have used their many years of industry experience and created an index made up of five of the 10 largest cryptocurrencies by market capitalisation.
What is market capitalisation?
This is the total value of all the company’s shares that investors own, or in the case of a cryptocurrency, it is the value of all the coins of that particular currency currently in supply.