A cryptocurrency basket is a group of digital assets combined into one investment product. Rather than buying each coin or token separately, people can use a basket to invest in several assets at once.

The idea of grouping assets has existed for decades in traditional finance. Index funds and exchange-traded funds let investors track sectors, themes, or strategies without selecting each asset manually. Crypto baskets follow the same logic. Investors can choose a theme like Layer 1 networks or major blue-chip coins, and their basket will reflect that mix.

In crypto, the way baskets work depends on the platform. Some platforms offer ready-made collections while others use smart contracts to create tokenized baskets with set rules. Some firms also provide regulated exchange-traded products that follow a crypto index. Each version suits different users, depending on whether they want convenience, control, or regulation.

Types of crypto baskets

Platforms use the term “crypto basket” in different ways, leading to types like custodial baskets, tokenized baskets, and exchange-traded baskets.

Crypto.com Basket feature

The Crypto.com App has a basket feature that lets users invest in selected groups of cryptocurrencies. These baskets are made for people who want wide exposure but prefer an easy, guided process instead of creating their own mix.

Crypto.com groups assets by themes. Users can pick a basket focused on categories like large-cap coins or blockchain networks. After choosing, the app shows which assets are included and their weights. When someone invests, the basket updates automatically with market changes.

The Crypto.com Basket is a simple way to buy several tokens at once, not a tokenized product. Users own the actual assets in their Crypto.com account. There isn’t a separate blockchain token for the basket. It’s just a bundled transaction that saves time and follows a set mix.

How to use the basket feature on Crypto.com

Using this feature is easy. Open the Crypto.com App, go to the trading or Explore section, and pick a basket. The app lists the included cryptocurrencies and their weights. Enter how much you want to invest, confirm, and the platform splits your funds across the assets right away. You can then track your basket’s performance in the app.

Advantages of the Crypto.com Basket feature

The Crypto.com Basket is designed to be simple. It helps people diversify fast without having to research each token. The app also saves time by splitting the investment automatically, so users don’t need to make multiple trades.

People who want a simple way to start with crypto often choose this basket. It takes away the guesswork of picking assets and offers an easy-to-use interface. The app tracks performance in real time. Since users own the tokens, they can withdraw, swap, or sell them whenever they want.

Tokenized crypto baskets from Alvara.xyz

Alvara.xyz takes a different approach to crypto baskets. Rather than just listing assets in an app, Alvara turns baskets into Ethereum tokens. These are called BSKT products, and each one is a single token that users can buy, sell, or use in other protocols.

The tokenized baskets run on Ethereum smart contracts described in EIP-7621, a proposal that defines a “Basket Token Standard.” This standard lets developers create composite assets that hold multiple underlying ERC-20 tokens. When someone creates a basket, the smart contract locks the selected assets inside and mints a single basket token that represents ownership of all the contents.

The basket token works like any other token and can be transferred easily. Whoever holds it owns a share of the assets inside the basket. These baskets are fully on-chain, transparent, and can be programmed with rules.

How to create crypto baskets with Alvara’s BSKT Lab

Alvara’s BSKT Lab lets users create, edit, and manage tokenized baskets without needing to code. Users pick which tokens to include, set the weights for each, and add rules like how often to rebalance. When finished, the basket becomes a smart contract on supported blockchains.

Here’s how you can get started:

1. Access the BSKT Lab: Open the Alvara dashboard and start a new basket project.
2. Choose the components: Tokens are selected from the list of supported ERC-20 assets. Assign weights, such as 40 percent ETH, 30 percent WBTC, and 30 percent governance tokens from specific protocols.
3. Define basket parameters: Some baskets include rules about rebalancing or minting. You can configure how deposits and redemptions work, how supply is handled, and whether the basket should be permissionless.
4. Deploy the basket: Once all details are confirmed, the basket is deployed as a smart contract. Matching amounts of underlying tokens must be supplied to mint the first batch of basket tokens.
5. Mint and distribute: You can mint additional basket tokens if the contract allows it. Anyone who holds these tokens gains exposure to the basket’s entire collection of crypto assets.

This setup is like a self-managed index fund that runs fully on blockchain technology.

Advantages of Alvara tokenized baskets

Tokenized baskets are a newer approach. Rather than keeping a list of assets in an exchange, the basket is a single token that can move between wallets and be used in decentralized finance apps.

The smart contract holds the underlying assets. When someone redeems the basket token, the contract returns the correct amount of each asset. This creates transparency because anyone can review the contract and verify the contents.

Alvara.xyz offers user interfaces based on this standard, so anyone can make baskets without coding skills. These baskets can be used as collateral, traded on decentralized exchanges, or added to yield strategies, depending on the protocols available.

Crypto ETF baskets and index funds

Crypto ETF baskets, or crypto index funds, work like traditional index products. Rather than owning just one cryptocurrency, investors buy shares in a fund that follows a group of assets. These products are usually regulated and set up like exchange-traded funds or notes.

A crypto index fund uses a methodology to determine which assets belong in the basket. Some track the largest cryptocurrencies by market capitalization. Others follow thematic categories such as smart contract platforms or decentralized finance.

The fund’s shares are traded on stock exchanges or other regulated markets. By buying shares, investors get indirect exposure to the basket.  Investors don’t need to manage the crypto assets themselves as the fund manager takes care of holding the cryptocurrencies, rebalancing, and following rules.

How to invest in a crypto index fund through 21Shares

21Shares provides several exchange-traded products that work like crypto index funds. They manage the custody, rebalancing, and structure of the product. Users get exposure through a regulated financial tool that sits in their regular brokerage account.

Investing in a 21Shares crypto index product usually involves the following steps:

1. Choose the index product: Review the available ETPs on the 21Shares website and select one such as TTOP.
2. Use a supported brokerage: Log in to a brokerage platform that lists 21Shares products in your region.
3. Search the product ticker: Enter the ticker symbol in the trading interface.
4. Place a buy order: Decide how many shares you want to purchase and submit the order like any stock or ETF.
5. Hold or trade the shares: Once purchased, shares appear in the brokerage account and can be held long-term or traded at will.

This process is similar to traditional finance and suits investors who prefer simple, regulated options.

Advantages of crypto index funds

Crypto index funds are similar to traditional index investing. Rather than buying digital assets themselves, people buy shares in a regulated product that owns the assets. This setup is good for those who like familiar financial products or want crypto in their retirement or brokerage accounts.

Products such as the 21Shares HODLX basket have clear rules for what assets are included. The fund is rebalanced regularly to match its plan. Investors just buy and hold the shares and do not have to periodically manage wallets or private keys.

Differences between Crypto.com Basket, tokenized baskets, and index funds

The three main types of crypto baskets have varying designs, ways of holding assets, and uses. Knowing these differences can help you pick the best option:

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