Next Google or Next MySpace? Exchange Takes Risk Out of Investing in New Cryptocurrencies

An exchange has launched a new service designed to take the guesswork out of investing in cryptocurrencies.

The exchange has created a service token called LyCI, which enables users to access the top-25 cryptocurrencies based on their market capitalization.

Lykke says it is "Rebalanced minute by minute, which means as cryptos gain and fall out of favor, you get a piece of this action as it is happening."

Top-25 with one clickLykke says that its LyCI service token amounts to the "Next generation of crypto," giving investors a chance to back the industry's most successful projects without having to take a view on "The next Bitcoin" themselves.

Explaining its rationale for launching the service token, Lykke says that it wants to help those who have only backed traditional investment products to find out more about what crypto assets have to offer.

In a Medium blog post, the team added: "The LyCI service token enables professionals and newcomers alike to participate in the crypto revolution, while diversifying the risk that is often associated with blockchain technology."

The exchange's CEO, Richard Olsen, added: "With the collapse of cryptos in 2018, investors are sitting on losses. They own BTC, ETH, EOS or AltCoins and have to decide if they should just stick with their holdings or switch to another crypto with a better outlook. Buying another crypto is risky, because their timing may be wrong."

Olsen says the service token means that investors no longer need to "Hodl" - crypto speak for holding on to digital assets in the hope things improve over time.

Lykke sells itself as a crypto exchange of "Swiss quality" and says its priority is offering secure storage and peace of mind for those who are buying their first Bitcoin.

In a quest for simplicity, purchases can be made using credit cards and bank transfers, and users get the chance to monitor how their crypto assets are progressing through a wallet "Packed with simple yet powerful features." The company says it offers zero trading fees, and also allows users to trade their crypto for fiat.