TokenSets Review

There are a variety of ways to gain value within the cryptocurrency asset sector. You can buy and hold, you can trade, and you can mine. But you want to make your life easier too. That is why you will see regular innovations happening within decentralized finance. 

One of these innovations is a TokenSets platform that will help you to easily manage your crypto portfolio. Here is a TokenSets review that will tell you everything you must know about the tool and how it can help to automate your crypto trading or at least a portion of your portfolio value allocation.

Time in Business

TokenSets was established in 2017 and has been in business for over three years now. That is pretty fantastic for a firm that is in an industry that is growing rapidly. See, in the era of technology, things move fast. As things move fast, individuals and situations within the sector age rapidly. 

They age rapidly in the sense that they are able to progress through much more activity, ramp up value, and accelerate further over a similar timeframe. This was not possible in the past because the world wasn’t measured in bits and bytes, it was measured in physics. 

As such, there’s much more to figure out and take care of to integrate a large set of values. But with money, more so digital money, the business that TokenSets is in, the situation is a tad bit different.

The firm has been able to learn and grow with the rest of the decentralized community. It makes sense, too. The decentralized sector is moving quite fast. It is certain that this is merely the beginning as traditional finance is slowly unraveling and individuals from that sector is seeking to create a new world or merge the old one with the new one.

That is where TokenSets comes into the picture and makes a large difference. Here is what you must know about their reputation and what they do for people within the field of decentralized finance.

Reputation

TokenSets has been around for over three years and has kept its reputation intact. It is no surprise that the project has been able to grab the attention of people across the world. Further, it continues to stay relevant among many people. That is quite a feat in a world where you have many shiny objects that profess value but offer very little.

The project is tested by Defi Pulse, Coin Shares, ember fund, SW Capital, Index, YAM Finance, Terra, and other players within the digital asset industry. Of course, these are also notable entities as well. So the TokenSets project has value by association as well.

 Here are a few of the key aspects of Tokensets. They tell people that they are all about simplifying asset management. But what does that mean?

The project leaders state that they institute battle-tested asset management techniques to systems to manage the value within a digital asset portfolio.

It provides opportunities for individuals to buy and sell sets. You can purchase or divest pre-made sets or you can create and customize your own set. What happens is that you either creating (minting) or taking back supply within each particular set with your actions. That is you and other people that are participating within the market. Remember that you are interacting specifically with the smart contract.

Did you know that sets also have the capacity for collateralization? That is a core feature of each set. They are wholly collateralized by the tokens that lay within each set. These underlying tokens are pushed into the marketplace or taken back at all times except for rebalancing periods for that specific set.

Acquiring and divesting each set is merely purchasing or selling each set and the aspects within it. If you seek to create or mint, you must provide 100% collateralization within the system, that’s when you get a set token for that specific portfolio.

When you seek to redeem that specific set, you would unroll the token and reveal the elements within it. If you have both LTC and BTC, 60, 40 in a set, you would want to ensure to have the equivalent amount within the set Wltc and Wbtc.

What’s awesome is that these work like ETFs in a sense. You do not have to purchase these different assets by themselves via decentralized exchange.

Exchanges Supported

You do not have to work with exchanges as TokenSet will aggregate all the necessary elements together and present them to you. You merely log in with MetaMask, allocate value, choose Sets, and move forward.

Price

There is no cost to this besides regular fees incurred by exchanges, taxes, or other aspects that you must deal with during regular trading. There is no cost to set protocol itself at the present moment. This is subject to change in the future as the platform progresses and becomes more popular.

Ease of Use

It is fairly easy to use as it only involves choosing a couple of aspects and then going on about your day. The work is largely done for you and you do not have to be as involved as with other applications.

Settings Available

TokenSets works to automate your investing and trading processes, enabling you to keep your life simple. It offers various strategies and has a simple interface enabling you to have the right exposure without other difficulties.

You can expect to have a simple dashboard to purchase various strategy-enabled tokens that represent a batch of various cryptocurrencies.

The best part is that when you purchase Sets, the management is done for you. Further, the asset management is done in a non-custodial fashion, which is great because you do not have to worry about various types of risk associated with that and it helps you stay true to the decentralized principles.

A Set is classified as an ERC-20 asset that will represent various units of crypto assets within the DeFi sector. That means that you can take advantage of stablecoins and have exposure to ETH and valuable tokens within one Set.

Instead of having to rebalance a part of the portfolio by yourself, you can have it done automatically. You get the advantage of seamless asset management and active management without any issues.

You have the ability to conduct yield farming and take advantage of margin trading. Remember that you have exposure to entities with integrations, lending platforms, and automated market makers. What is intriguing is that the Set protocol will look at overall market conditions and allocate assets and value accordingly. That means that you can take advantage of various signals without being manually present. The core idea is to work with Set and it will manage it for you based on your strategy.

Again, it is necessary to note regular rebalancing takes place within a TokeSet, the only core aspect you must pay attention to is the idea of the specific management strategy. Then, all you do is merely purchase a specific set, keep it in your DeFi wallet and let technology do the work.

The idea is to simplify the process as much as possible so you only have to provide a certain asset and the smart contract would go and obtain the other portion with the right amount of value.

You are forming ERC-20 portfolios that can then swap around on various entities. To simplify, you are forming portfolios that are on one token, that then moves around across various exchanges. That’s what is intriguing about them.

The value is that the Set project will ensure liquidity from various hubs, then provide visibility for the portfolio to various people.

What is great is that you can have a simple dashboard, swap assets, earn yield, and even place fees for the asset. The project wants to make it easy to create portfolios and gain genuine value with access to decentralized finance projects in one simple place.

Security

The security with this relates to several factors. For instance, you can notice that security boils down to two types of risks. The first is the market risk and the second is the holding risk. The first risk is applicable in all volatile asset environments. It is true when using TokenSets, the stock market, ETFs, or other aspects.

But thankfully, TokenSets will rebalance and do the work automatically based on your chosen strategy.

You can minimize the first risk by either looking at in-house sets, custom ones and hosted sets. If you are well diversified or concentrated in specific ways, you should be fine.

Take advantage of social sets that are essentially copy trading. When the human manager makes a move, you make the same move. On to the next one, robot sets. Robosets enable hardcoded movement, which means that robots will make decisions based on the chosen strategy.

Buy and hold, range, momentum, or trend-oriented sets.

The next aspect of security is asset safety. How do you do that? Well, you want to make sure that you are choosing a great wallet like MetaMask or another one and keeping it safe and secure. Remember that you will keep Set within your wallet and the protocol interfaces from there.

The third aspect is smart contract risk. Remember that smart contracts are subject to various risks that range from hacks to bugs within the code. It is necessary to be aware of this as you are working with the protocol. That means that you do not want to allocate a significant portion of your value with this one. Instead, you should go ahead and diversify with other platforms to minimize risk. That means if someone were to hack the smart contracts in your sets you would still be fine.

If you are able to follow the right steps and act with caution, you can make sure to have proper security across the board and do well with Sets.

Customer Support

You can access a discord channel to discuss your concerns and overall queries with TokenSets.

Profitability

You will notice that TokenSets can compare with other platforms. These digital asset representative tokens and their automated nature can compete quite well with other platforms. They can even make the situation even more seamless as it can automatically re-adjust and act based on a variety of situations.

Speculators may appreciate this one because of rebalancing. Now, rebalancing is where the set will rebalance assets based on risk and opportunity. Each set will vary based on various market aspects, conditions, and other factors to rebalance wisely. Remember that rebalancing can take place after price movement and market action but also after time decay.

Further, balancing does not take place when the user requests it, it takes place automatically.

What does this have to do with profitability? Well, it can help with risk mitigation and opportunity maximization which can help with overall growth.

Now, in regard to overall profitability. Yes, it might help you to become more profitable. But you must make sure to understand the strategies, work with the right human-centric managers or diversify in the right way to increase your overall portfolio value. 

Yes, it does make your life easier but do not count on it to exclusively generate the entire value for you. It could be best to check in on the market and choose strategies that should be in line with portfolio value increase.

Conclusion

The primary aspect that you will notice with Sets is that they will adjust according to the market. It happens regularly and without any action on your part. See, with Sets, it is set and forget it, quite literally.

If you want to ensure to have more exposure to specific assets that would rise in value, but do not have as much time to manage it, then you must ensure to view TokenSets and find out if it is right for you.

At the same time, it is necessary to note that SET may not be available to some people in various countries due to legislation and different regulatory factors. That is an issue even in the decentralized finance sector. The project managers themselves do not want to have to face jail time, prosecution, or other aspects and would rather cover themselves by making sure to stay in line with regulations.

It makes one wonder how much value one can see in decentralized finance if everything will become regulated over time. Remember that you must also think about regulatory risk and the fact that governments could clamp down harder on decentralized finance due to excessive risk-taking or other aspects that are present within the sector. These are factors to watch out for while you take advantage of TokenSets!