What is the difference between an index fund and a mutual fund in the context of cryptocurrency?

1 answers

• May 03, 2022 · 3 years ago
  In the context of cryptocurrency, index funds and mutual funds offer different investment options. An index fund is a type of passive investment vehicle that aims to replicate the performance of a specific cryptocurrency index. It does this by holding a diversified portfolio of cryptocurrencies in the same proportion as the index. On the other hand, a mutual fund is actively managed by a professional fund manager who makes investment decisions based on their analysis of the market. They aim to outperform the market by selecting and managing a portfolio of cryptocurrencies. So, the key difference is that an index fund tracks an index passively, while a mutual fund involves active management by a professional.
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