Demystifying ETFs: A Detailed Guide for Crypto Beginners

Demystifying ETFs: A Detailed Guide for Crypto Beginners

1
Exchange-traded funds (ETF) are primarily a great way to explore various asset classes during investment while hedging against the risk that comes with it. 
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Crypto ETFs track the value of a collection of crypto assets or companies that derive their revenue from blockchain-based operations.
ETFs are a basket of securities that permits traders to spend money on numerous securities at the same time. They have similar capacity and function as mutual funds, however, they can be traced as stocks. 
It shows when an investor invests in the S&P 500 ETF, they are essentially investing in multiple companies at once. This is why, ETFs are a wonderful tool for diversifying products.
Two Major Types of ETFs
1) Passive ETFs
Passive ETF is the fastest-growing ETF as it’s simpler to manage and alleviates investor anxiety. Passive ETFs typically concentrate on a specific sector or industry. For example, the U.S. Technology ETF tracks companies in the technolog

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