What is Crypto Thematic Basket Investing?

Crypto Smartlife Research Team
Jan 16 2022 . 2 Minutes Read

Bitcoin's soaring popularity since its inception in 2009, has been a case of curiosity for almost many technologists and investors. Like the Internet boom, cryptocurrency too just took a few years to become a mainstream topic, and it is growing now more than ever. The advent of blockchain, the underlying technology of Bitcoin, gave rise to various use cases transforming the way we live, interact and transact. Themes such as Blockchain tokens, Decentralized Finance, Web 3, Metaverse, Non-Fungible Tokens have become key conversational topics. Each theme disrupts a specific traditional use case by pointing to the internet future over the next 5+ years. This future promise  has attracted many budding startups, established companies, complex projects, Decentralized Autonomous Organizations (DAOs) to build products and services around these themes and lead the disruption.

Now, what exactly is Thematic Basket investing ??

It is about investing in similarly themed crypto-assets all as part of one basket of crypto assets. All tokens within these baskets are focused on the theme and are used within a specific project to enable innovation. Instead  of selecting various individual coin assets, thematic baskets help in grouping various assets saving time and effort for investors. These assets are then grouped based on various factors such as returns, volatility, and asset co-relations.

Investors can select a basket based on a popular theme, and then make a risk appetite selection based on their individual preferences  around Returns, Volatility, Draw downs,etc. Each Basket has been built by the asset allocation algorithm in a manner that maximizes the returns at a given risk level. In other words, the algorithm minimizes the risk for corresponding returns. Only coins that meet investment methodology from the top 100 market capitalization coins are added to these baskets based on the fit to the specific themes.

Some of the most popular themes :

Decentralized Finance

or Defi is an emerging Fintech theme , it eliminates the need for banks to act as intermediaries for various banking products and services such as lending/loans, interest/yield , Derivatives , DAOs (decentralized autonomous organization.


is touted as the future of the internet, a 3D virtual world focusing on social connections. It's a combination of multiple elements of technology, including virtual reality, augmented reality, and video where users "live" within a digital universe. Metaverse is a virtual economy in its own self and as all economies need a currency, so does Metaverse. Here it uses digital currency, i.e. the cryptocurrency.


stands for Non Fungible tokens. “Non-fungible” more or less means that it’s unique and can’t be replaced with something else. It is a non-interchangeable store of data stored on the digital ledger of blockchains. NFTs are associated with reproducible digital files such as videos, photos, gifs, audios, etc.

Thematic investing is all about investing in the disruptive promise of a futuristic theme within emerging technologies. Even though thematic investing reduces the effort required to select individual crypto projects, investors are highly advised to study, research the theme, and projects prior to investing.

Note: *We are not your financial or investment or legal advisors. Any information available on our Platform is for general use only and it is not our intention that you should rely on the same to purchase crypto-assets. The baskets listed on our Platform are suggestive, and you should invest in crypto-assets only after conducting independent research and considering your individual circumstances.

Trading in Digital Tokens entails certain risks. This risk disclosure statement cannot and does not disclose all risks and other aspects involved in holding, trading, or engaging in Digital Tokens. Digital Asset values can fluctuate substantially and unexpectedly with little or no warning, which may result in a substantial loss of investment.

Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.  As suggested by RBI in India, investor discretion is advised.