SiFi Baskets

In crypto terms, a basket is a selection of digital assets that provide users with exposure to different sectors of the cryptocurrency market.

SiFi Finance, therefore, offers a Crypto Basket that covers and allows users to invest in different sectors within the cryptocurrency market. It provides users with the platform to allocate their funds in any basket of their choice.

There is the chance to invest in baskets of coins across DeFi, NFT, Metaverse, Blockchain infrastructures and other Hustler’s picks as curated by top portfolio managers.

SiFi makes provision for single-asset baskets as well as multiple-assets baskets. This means that users can choose to have just one asset (such as a stable coin) in a basket or choose to have varieties of SiFi assets in a basket. Users can also have multiple baskets.

How SiFi’s Baskets Work?

Users decide to invest their assets in a basket or baskets of their choice.

Once users have their funds invested in selected baskets, SiFi oversees the re-allocation of the portfolio and its rebalancing.

The rebalancing, as previously explained, is to curb the fluctuation in the value of assets. The Rebalancing process involves selling some of the highest-performing assets and buying some of the lowest-performing assets to return the baskets to their desired weight.

For example, if a basket has four assets, all four assets in a basket may be of the same sizes or varying sizes (provided that this is the user’s choice). That is, if a user is investing $100 in a basket of 4 coins (ETH, BNB, SOL and DOT), all assets are expected to be split across the four coins which implies $100/4 ($25) is invested on each of those coins.

Or for a different basket category, the $100 invested may be split as 30%, 25%, 25% and 20% across the four coins. Whether it is $100 or $5000, what is constant is that the funds invested will be fully spread across different coins in the basket selected using the various percentiles.

If one asset weighs more than the other, the rebalancing process is carried out to adjust the basket and make sure each amount invested equates the worth of coins in each basket.

The reallocation of assets, on the other hand, occurs when the assets in the basket require a change.

For example, if the top 5 assets in the basket are tracked and arranged by order of market capitalization, coins may have to change as the market capitalization changes.

However, SiFi Finance does not allow its users to go through the stress of trying to reallocate and rebalance their baskets as SiFi algorithms oversee the basket. They help investors who have no time or have limited knowledge about how it works to manage their baskets and virtual assets.

Users can also deposit or withdraw funds from their accounts while they can also add new baskets to their portfolios whenever they need to.