Crypto Basics

What Is ETF Investing? A Complete Guide for Beginners in 2025

Learn what ETF investing is, how it works, its benefits, and how Token Metrics helps you make smarter ETF decisions — including with crypto ETFs in 2025.
Token Metrics Team
6 min
MIN

ETF investing is one of the smartest and most accessible ways to grow your wealth in 2025. With over $12 trillion in assets globally, Exchange-Traded Funds (ETFs) have become a go-to strategy for investors seeking low-cost, diversified, and flexible exposure to a wide range of markets — including stocks, bonds, commodities, and even cryptocurrencies.

In this guide, we’ll explore:

  • What is ETF investing?
  • How ETFs work
  • Different types of ETFs
  • Benefits and risks of ETF investing
  • How to use platforms like Token Metrics to make better investment decisions, especially with crypto ETFs

📌 What Is ETF Investing?

ETF investing refers to buying and holding shares of an Exchange-Traded Fund (ETF) — a marketable security that tracks a collection of assets such as stocks, bonds, or digital currencies. ETFs are traded on public exchanges just like individual stocks, meaning you can buy or sell them anytime during market hours.

Unlike mutual funds, ETFs are passively managed and aim to replicate the performance of a particular index or sector. For example, the SPY ETF tracks the S&P 500, giving you exposure to 500 of the largest U.S. companies with a single investment.

🔍 How Does an ETF Work?

An ETF is managed by an investment company that holds the actual basket of assets. This company issues shares that represent fractional ownership of the entire portfolio.

Here’s how ETF investing works in practice:

  1. You buy ETF shares on a stock exchange through a broker (just like buying a stock).
  2. The ETF provider holds the underlying assets (e.g., stocks, bonds, crypto).
  3. You gain exposure to all assets in the fund with one transaction.
  4. ETF price moves with the market value of its underlying assets.

This model provides instant diversification, reducing risk and simplifying portfolio construction.

🔍 What Are the Types of ETFs?

In 2025, ETF investing is more versatile than ever. Investors can choose from a variety of ETFs depending on their risk appetite, market outlook, and investment goals.

1. Equity ETFs

Track a group of stocks, either broadly (e.g., S&P 500, Nasdaq) or thematically (e.g., AI, electric vehicles, cybersecurity).

2. Bond ETFs

Offer exposure to government or corporate bonds, ideal for income investors seeking lower volatility.

3. Commodity ETFs

Provide access to raw materials like gold, silver, oil, or agricultural goods — useful as inflation hedges.

4. Thematic ETFs

Focus on emerging trends like blockchain, green energy, Web3, or metaverse industries.

5. Crypto ETFs

New in 2025, these ETFs give regulated exposure to digital assets like Bitcoin, Ethereum, and altcoins without managing wallets or private keys.

✅ Benefits of ETF Investing

ETF investing offers many benefits for both beginners and experienced investors:

1. Diversification

One ETF share exposes you to dozens or even hundreds of assets, reducing portfolio risk.

2. Low Fees

ETFs typically have lower expense ratios (0.03%–0.75%) compared to mutual funds (1%+), allowing you to keep more of your returns.

3. Liquidity

ETFs are traded on public exchanges, so you can buy and sell throughout the day, unlike mutual funds that settle once daily.

4. Transparency

Most ETFs disclose holdings daily, so you know exactly what you own.

5. Tax Efficiency

Due to their structure, ETFs are often more tax-friendly than other pooled investment vehicles.

⚠️ Risks of ETF Investing

While ETF investing has many advantages, there are a few risks to consider:

1. Market Risk

Your ETF will rise or fall with the market it tracks. If the S&P 500 drops, so does the SPY ETF.

2. Tracking Error

An ETF may not perfectly match the index it tracks due to fees or poor asset replication.

3. Over-Concentration

Some ETFs are heavily weighted in a few assets, which can increase volatility.

4. Liquidity Risk

Smaller or niche ETFs may have lower trading volume, making it harder to exit positions quickly.

📈 What Is Crypto ETF Investing?

In 2025, crypto ETF investing has gained significant traction. Thanks to regulatory clarity in major markets like the U.S., investors can now access:

  • Bitcoin spot ETFs (e.g., IBIT by BlackRock)
  • Ethereum ETFs
  • Altcoin basket ETFs
  • Thematic ETFs focused on DeFi, NFTs, or AI crypto

These ETFs make it easier to gain exposure to crypto assets through traditional brokerages and tax-advantaged accounts — without handling the complexity of wallets or exchanges.

🤖 How Token Metrics Enhances ETF Investing

Token Metrics is an AI-powered crypto analytics and research platform that can be used alongside ETF investing, especially when evaluating or managing crypto ETF exposure.

1. AI Price Predictions

Token Metrics uses machine learning models to forecast future prices of top cryptocurrencies — helping investors anticipate ETF performance tied to those assets.

2. Trader and Investor Grades

Each token tracked by Token Metrics receives a Trader Grade (short-term signal) and Investor Grade (long-term strength), allowing users to compare underlying assets of ETFs.

3. Real-Time Market Signals

If a crypto asset in your ETF becomes bullish or bearish, Token Metrics alerts you in real time — helping you decide whether to hold or rotate exposure.

4. Portfolio Tracking

You can sync your wallet or exchange accounts and use Token Metrics to monitor how ETF-related tokens are performing in your overall crypto portfolio.

💬 ETF Investing vs. Mutual Funds vs. Crypto

For most retail investors in 2025, ETF investing offers the best balance between simplicity, diversification, and risk management — especially when paired with tools like Token Metrics.

🧠 Final Thoughts

ETF investing is one of the most powerful tools for building long-term wealth in today’s fast-moving markets. It provides instant access to diversified portfolios across traditional and emerging sectors — including cryptocurrency.

By combining ETF investing with AI-powered insights from Token Metrics, you gain an edge in identifying opportunities, managing risk, and adapting your strategy as markets evolve.

Whether you're buying your first ETF or exploring the future of finance through crypto ETFs, now is the perfect time to put ETF investing at the core of your portfolio strategy.

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Token Metrics Team
Token Metrics Team

Recent Posts

Announcements

Introducing Token Metrics Investor Grade

Token Metrics Team
5 minutes
MIN

Token Metrics is proud to launch the "TM Investor Grade" to help investors identify promising long-term investments in the world of cryptocurrency. The grade is comprised of three subsets: 

  • The Fundamental Grade
  • The Technology Grade, and 
  • The Valuation Grade. 

Our statistical analysis and machine learning techniques help calculate these grades. They account for many data points to provide a strong indication of the relative strength of each crypto asset or a project.

The TM Investor Grade is intended for use by investors looking to hold onto investments for a longer period of time, created by combining the Fundamental Grade with the Technology Grade and Valuation Grade.

Fundamental Grade

Fundamental analysis has always been a crucial part of the research process at Token Metrics. Before considering any potential long-term investments, we conduct a thorough fundamental analysis to understand an asset's underlying strengths and weaknesses. Our use of fundamental analysis is how we discovered the promising investment opportunity in Helium back in 2018.

However, manually performing fundamental analysis on every token in the market is not feasible. This is why our research and data science teams automated the process. The result is our Automated Long-term Investor Grade. This grade considers a wide range of data points and applies statistical analysis to provide scores in various categories, including valuation, investors, tokenomics, community, and more. 

Technology Grade

Token Metrics is also known for conducting code reviews on cryptocurrency projects. This is how we discovered that MATIC was a particularly strong project. Similar to fundamental analysis, our blockchain engineers carried out these reviews manually. However, we have now automated the entire process. Using open source data, we are able to provide technology scores for nearly all crypto assets. This is extremely valuable for investors, as it allows them to assess the long-term security and feasibility of different investments. Our technology scoring is based on three main categories: development activity, security and audit, and code quality.

The development activity category takes into account the contributions of the development community and tracks various community metrics. The security and audit category looks at the security of a project and tries to determine its resilience to hacks and other vulnerabilities. The code quality category measures how well the project's code is written, by evaluating the number of bugs and violations it has and how well it adheres to best coding practices and standards.

We are thrilled that our data science team, in collaboration with our engineering team, has been able to use statistical analysis to scale up our powerful technology scoring to cover almost all assets in the market.

Valuation Grade

The valuation grade compares a project's fully diluted value, or FDV, with the average FDV of different sectors that project belongs to.

Consider this example:

  • CRV belongs to sector A and B
  • CRV's FDV = 10
  • Average FDV in sector A = 20
  • Average FDV in sector B = 50

This will show a high valuation grade because the project is undervalued compared to its sectors.

By combining these grades, we get the TM Investor Grade which is much more powerful in determining the strength of the project in the long run.

How To Access

To view the Investor Grade, you can go to the individual token details page. Click on the 'Investor' tab on the left of the screen, and then click on the 'Fundamentals' tab. Then, you will be able to see how the asset is performing in each of the 9 categories we use . All these categories are combined to create the overall Fundamental grade. To generate this grade, we use a wide variety of data sources to gather all the necessary information.

In the same tab, you will find the 'Technology' grade. This grade comprises many different data points. These data points combine into three major categories:

  • Development Activity
  • Security and Audit, and 
  • Code Quality.

You can also access the newly-launched feature on the Rating page by pressing the Investor switch next to Trader. This will help you sort all crypto assets by our Long-term Investor Grade.

If you look at the Ratings page - sorted by Investor Grade in descending order [highest to lowest] - these are assets that Token Metrics believes have strong potential in the future.

The TM Investor Grade is a powerful tool for evaluating the long-term potential of cryptocurrency projects. By considering various data points, including fundamental analysis, technology scoring, and valuation grades, the grade provides a comprehensive assessment of a project's strengths and weaknesses.

The grade updates regularly to reflect changing market conditions, making it an essential tool for anyone looking to invest in the cryptocurrency space.

FAQs

1. How does the Investor Grade differ from the Trader Grade?

The Investor Grade is intended for long-term investing, while the Trader Grade is geared toward short-term trading. The data points used to calculate the Investor Grade differ from those used for the Trader Grade.

2. Which grade should I pay more attention to - the Investor Grade or Trader Grade?

If you are interested in short-term trades based on price action, such as swing or day trades, you should consider the Trader Grade. On the other hand, the Investor Grade is more suitable for customers who want to invest long-term and hold on to their assets for the potential of significant returns or to discover undervalued assets.

NFTs

Best NFT Marketplaces - 10 Marketplaces for NFTs in 2023

Token Metrics Team
5 minutes
MIN

As the world of cryptocurrency continues to evolve and the blockchain revolution continues to gain traction, non-fungible tokens (NFTs) are becoming increasingly popular. NFTs are digital assets that are stored on the blockchain and are unique and non-interchangeable. They are used to represent everything from art, music, videos, and digital collectibles. With the rise of NFTs, more and more people are looking for the best NFT marketplaces to buy and sell their NFTs. If you are someone who is also looking for the top NFT marketplaces to buy, sell, and trade NFTs on, this is the place to be.

In this article, we’ll take a look at what an NFT marketplace is and how they work. We’ll also provide a list of the best NFT marketplaces, so you can find the perfect place to buy or sell your digital artwork.

What Is an NFT Marketplace?

An NFT marketplace is a digital platform specifically designed to facilitate the sale and purchase of NFTs or Non-Fungible Tokens. NFTs are digital artworks that are created, bought, and sold on these marketplaces. They are unique digital tokens that are stored on the blockchain and can be bought, sold, and traded. It is the perfect place to find and purchase digital art works created by talented artists from around the world.

The concept of NFTs has been around for a few years, but it has only recently started to gain traction. As more people become aware of the potential of NFTs, the demand for these marketplaces is increasing. There are now many different NFT marketplaces available, each offering something unique and different.

NFT marketplaces are a great way to find and purchase unique digital artwork from talented artists. They are also a great way to invest in digital art, as NFTs can be bought, sold, and traded for a profit.

How Do NFT Marketplaces Work?

NFT marketplaces work by connecting buyers and sellers of digital artwork. Buyers can browse through the different artworks available, and then purchase the artwork they like. The artwork is stored on the blockchain, and the buyer receives a unique token that represents the artwork. This token can then be used to buy, sell, or trade the artwork.

When a buyer purchases an artwork, the money goes to the artist who created the artwork. The marketplace then takes a small commission for facilitating the transaction. The commission varies from marketplace to marketplace, but usually, it is around 5-10%.

The artwork is stored on the blockchain, and the buyer receives a unique token that represents the artwork. This token can then be used to buy, sell, or trade the artwork. The token can also be used as a form of digital currency and can be exchanged for other digital assets like cryptocurrencies.

NFT marketplaces are a great way to find, buy, and sell digital artwork. They are also a great way to invest in digital art, as NFTs can be bought, sold, and traded for a profit.

Why Is It Important to Understand the Best NFT Marketplaces?

It is important to understand the best NFT marketplaces because they provide users with a secure, user-friendly platform to buy and sell NFTs. The marketplaces also provide users with access to a variety of services such as NFT auctions, NFT staking, NFT creation, and more.

The best NFT marketplaces also provide users with the option to purchase NFTs using cryptocurrency. This makes it easier for users to purchase NFTs without having to rely on traditional currency. The marketplaces also make it easy for users to store and manage their NFTs.

Finally, the NFT marketplaces also provide users with access to a wide variety of NFTs. This allows users to easily find and purchase the NFTs they are looking for.

List of Best NFT Marketplaces

The following is a list of the best NFT marketplaces for 2023. All of these marketplaces offer something unique and different and are great places to find and purchase digital artworks.

  1. OpenSea: OpenSea launched in 2017 and became one of the most popular NFT marketplaces. It has a wide selection of digital art, ranging from digital collectibles to digital artwork. OpenSea also has a built-in auction system, which makes it easy to buy and sell digital artwork.
  2. Magic Eden: Magic Eden started as an NFT marketplace for Solana but now supports multiple blockchains to buy, sell, and trade NFTs on.
  3. Rarible: Rarible launched in 2020 and became an important marketplace for digital art. It has a huge selection of digital artwork from talented artists, and it also has a built-in auction system with 0% fees.  
  4. SuperRare: SuperRare is another popular NFT marketplace launched in 2018, powered by a community of artists, curators, collectors and partners.
  5. MakersPlace: MakersPlace marketplace launched in 2018, for rare, authentic and curated digital art. It’s a great place for renown artists powered by blockchain technology.
  6. Foundation: Foundation is an NFT marketplace launched in 2021, that specializes in digital collectibles. It has a large selection of digital collectibles with a built-in auction system.
  7. Decentraland: Decentraland launched in 2020. It is a virtual destination for digital assets. You can buy land, estates, avatar wearables and names in the Decentraland Marketplace.
  8. Sorare: Sorare is another NFT marketplace launched in 2019 that specializes in digital collectibles where you can collect, play and win officially licensed digital cards featuring the world's best global football, NBA and MLB players.
  9. Dapper Labs: Dapper Labs was founded in 2018. It uses the power of play to deliver blockchain-based experiences and digital collectibles that are made for you and ready for the real world.
  10. Nifty Gateway: Nifty Gateway is another NFT marketplace you can use. It offers a diverse range of art and collectible NFTs which are available as Curated Drops.

Conclusion

NFT marketplaces are a great way to find, buy, and sell digital artwork. They are also a great way to invest in digital art, as NFTs can be bought, sold, and traded for a profit.

Whether you’re looking to buy digital artwork or invest in digital art, these marketplaces are the perfect place to start. So why wait? Start exploring these marketplaces and find the perfect NFT for you today.

Crypto Basics

How to Invest in Cryptocurrency - A Step by Step Guide

Token Metrics Team
8 minutes
MIN

If you are wondering how to invest in the cryptocurrency space, this is the perfect place to be.

As the world of cryptocurrency continues to expand, it is important to understand what to consider before investing in cryptocurrency. This guide will provide you with a comprehensive overview of the most important things to consider before investing in cryptocurrency, including what to look for in a potential investment, alternative ways to buy a crypto, how to keep your cryptocurrency secure, and tips for investing responsibly.

Introduction to Cryptocurrency Investing

Cryptocurrency investing can be an exciting and potentially profitable venture. But it's important to understand the risks associated with investing in cryptocurrency and the steps you should take before investing your hard-earned money. Cryptocurrency investing is a relatively new concept and the market is constantly evolving. It's important to do your research and understand the potential risks and rewards before jumping in.

In order to make an educated decision about whether or not cryptocurrency investing is right for you, you need to understand the basics of cryptocurrency investing. A cryptocurrency is a form of digital currency that is not controlled by any central authority, such as a government or bank. Instead, it is created and maintained by a decentralized network of computers that use cryptography to secure transactions. Cryptocurrency is typically exchanged for goods and services, or for other forms of currency.

There are a few key differences between cryptocurrency and traditional currencies. For one, cryptocurrency is not backed by any physical asset, such as gold or a government-issued currency. Additionally, cryptocurrency is not regulated by any government or financial institution. This means that the value of cryptocurrencies can be highly volatile and unpredictable, which can make investing in them a risky endeavor.

What to Consider Before Investing in Cryptocurrency

Before investing in cryptocurrency, it is important to understand the risks associated with it. Cryptocurrency is not backed by any physical asset, so its value is highly volatile and unpredictable. This means that investments can quickly lose value, and there is no guarantee that you will get your money back. Additionally, cryptocurrency is not regulated by any government or financial institution, so it can be difficult to know who to trust and who to avoid.

When considering whether or not to invest in cryptocurrency, it's important to understand the different types of cryptocurrencies available. There are thousands of different cryptocurrencies on the market, each with its own set of characteristics and features. It's important to research each type of cryptocurrency and determine which one might be the best fit for your investment goals.

You should also consider the cost of investing in cryptocurrency. Cryptocurrency is a global market, so the cost of investing in it can vary significantly from one country to the next. Additionally, different exchanges may charge different fees for trading. It's important to research the fees associated with each exchange to ensure you are getting the best deal.

Finally, it's important to understand the potential tax implications of investing in cryptocurrency. Many countries have different regulations regarding the taxation of cryptocurrency investments, so it is important to understand the rules in your area before investing.

Alternative Ways to Buy Cryptocurrency

When it comes to investing in cryptocurrency, there are a few different ways to go about it. The most popular way to purchase cryptocurrency is through an online exchange. These exchanges are typically easy to use and offer a variety of different cryptocurrencies. Additionally, some exchanges offer lower fees than others, so it's important to shop around for the best deal.

Another option for investing in cryptocurrency is to purchase it directly from an individual. This can be done through a peer-to-peer platform, such as LocalBitcoins. This allows you to purchase cryptocurrency directly from another individual, without having to go through an exchange. However, this method can be riskier than using an exchange, as there is no guarantee that the person you are purchasing from is legitimate.

Finally, there are some platforms that allow you to purchase cryptocurrency with a credit or debit card. This is typically the easiest and most convenient way to purchase cryptocurrency, but it also has some drawbacks. Credit and debit card purchases typically come with higher fees than other methods, and the transactions can be reversed if the seller does not deliver the cryptocurrency as promised.

The 5-Step Process of Crypto Investing

Follow this 5-step process to make first cryptocurrency investment.

Step #1 Choose a Broker or Crypto Exchange

If you are new to crypto, you can start off by choosing a broker or a crypto exchange. Although both serve the same purpose, there is a tiny difference between them.

Cryptocurrency Exchange is a third-party company that can help you invest in crypto with a convenience fee. Both buyers and sellers can actively trade cryptocurrencies using the platform. Having said that, make sure to learn enough about the standard crypto trading platforms before investing.

Step #2: Create and Authenticate Your Account

Once you are set with the platform, now you have to simply create an account and then authenticate yourself to start hassle free trading. 

Step #3: Link Your Bank Account to Your Crypto Account 

Now that you have verified your account, it is time to add your bank account or use a debit card to ensure cash deposit to invest in crypto. 

Step #4: Place Your Cryptocurrency Order

Yes! You are almost there. You just need to take one more step of placing your cryptocurrency order to start your trade. You can enter the ticker symbols, such as BTC for Bitcoin, and invest as you please. 

Step #5: Choose Your Storage Method

Since cryptocurrency exchanges are not regulated or secured widely, it is essential that you choose an appropriate storage method to avoid the risk of theft or hacking. It is best to store cryptocurrencies offline or in a cold wallet like Ledger.

How to Keep Your Cryptocurrency Secure?

Once you have purchased your cryptocurrency, it is important to take steps to keep it secure. The first step is to create a secure wallet to store your cryptocurrency. There are a variety of different wallets available, so you should research each one and determine which one is best for your needs.

Once you have chosen a wallet, it is important to create a strong password and keep it safe. This password should be unique and difficult to guess. Additionally, you should enable two-factor authentication whenever possible. This will require a second form of verification, such as a code sent to your phone, before you can access your wallet.

It is also important to keep your wallet backed up. Many wallets offer the ability to export your funds to a secure backup. This will ensure that you can recover your funds if something were to happen to your wallet. You should also keep your wallet updated with the latest security patches to help ensure that your funds are safe.

Tips for Investing Responsibly

Cryptocurrency investing can be an exciting and potentially lucrative venture, but it's important to invest responsibly. Before investing, it's important to understand the risks associated with cryptocurrency investing, such as the potential for highly volatile prices. Additionally, it's important to understand the tax implications of investing in cryptocurrency and ensure that you are following all applicable laws.

It's also important to diversify your investments. Rather than investing all your money into a single cryptocurrency, it's wise to spread your investments across a variety of different coins and tokens. This will help to reduce your risk and ensure that you are diversifying your portfolio.

Finally, it's important to invest only what you can afford to lose. The cryptocurrency market is highly unpredictable, so there is always the potential for losses. It's important to remember that investing in cryptocurrency is a long-term process and that short-term gains should not be your primary focus.

As an investor, you need an acute understanding of what could be the potential cryptocurrencies that make you good fortune. And for that, you need to dig deeper into analyzing hundreds of coins to know and understand the best investments to make. 

We help with that. Token Metrics is an AI-based crypto-research platform that can save you hours of research and bring you accurate data to make an informed decision. 

Click here to get ahold of the BEST plans available for crypto investors like you. 

Conclusion

Cryptocurrency investing can be an exciting and potentially profitable venture, but it's important to understand the risks and rewards before investing your hard-earned money. This guide has provided you with a comprehensive overview of the most important things to consider before investing in cryptocurrency, including what to look for in a potential investment, alternative ways to buy cryptocurrency, how to keep your cryptocurrency secure, and tips for investing responsibly. With the right knowledge and strategies, you can invest in cryptocurrency with confidence and reap the rewards of a successful investment.

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