Active vs passive investing


There are two main approaches to managing your portfolio: active and passive.

Active investing takes  a hands-on approach to investing and has the goal of actively beating the market’s average returns by relying on fundamental and technical analysis to select the best assets at any given time. The rewards of active management are potentially higher, the fees are often higher as well.

Passive investing tries to mimic the performance of the market by investing in a group of assets that represent a part of the market or the overall market. When the overall market falls, passive portfolios tend to fall while rising when the market goes up. Index funds are a form of passive investing that buys and holds many different assets and then leaves them alone, which makes them more affordable.

Why should you care?

The crypto market is very volatile and more so than the traditional markets. Many cryptos fell 90%+ from the 2018 peak and similarly, in 2022 we are seeing many cryptos falling by 50%+. That is why Moonbit is an active investment advisory. We use our algorithms to make sure you benefit from the bull market while protecting your returns when the market falls. By using automated software we make sure that you consistently beat the overall market while keeping fees affordable.