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BNB Index
  • Key Takeaways
  • Binance Coin (BNB) Index Information
  • What’s an Index?
  • What’s the objective of the BNB Index?
  • What are the advantages?
  • Practical example
  • Charges for this Index
Key Takeaways
  1. Indices are a great way to make your assets work for you.
  2. Instead of HODLing, the index takes advantage of price swings.
  3. FNDZ indices are designed to buy low and sell high.
  4. Minimize the time and effort you spend trading.
  5. All fees and trades are completely transparent.
Binance Coin (BNB) Index Information

This article provides you with key information about the FNDZ BNB Index. The information is designed to help you understand the nature and the risks of the index. You are advised to read it so that you can make an informed decision before making a deposit.

What’s an Index?

An “index” is a portfolio that contains a range of cryptocurrencies that you can buy or sell as a unit. The index makes it easy to diversify your crypto portfolio. If the value of a cryptocurrency rises, the value of the index rises. Or, when the value of a coin falls, the value of the index falls. To counter volatility, FNDZ uses a process called rebalancing. This process adjusts your portfolio on a weekly basis to maintain an ideal risk-return ratio.

What’s the objective of the BNB Index?

The aim of this BNB index is to generate a return from the volatility of Binance Coin, the largest and most liquid exchange coin on the market.

FNDZ offers three different Indices, each with a different level of BNB exposure:

  1. BNB-Light Index: The index has 34% BNB and 66% BUSD stablecoin, ideal for conservative traders.
  2. BNB-Balance Index: The index holds a 50/50 split between BNB and BUSD.
  3. BNB-Heavy Index: The index has 66% BNB and 34% BUSD stablecoin, ideal for traders who are bullish on BNB.

The weighting is based on Market Cap, which is determined by multiplying the number of BNB shares by the current BNB price. The index is rebalanced weekly to reflect changes in BNB price..

What are the advantages?

The FNDZ BNB Index is a simple and hands-off way to manage your crypto portfolio. Once a week, your portfolio will be adjusted to account for changing market conditions. It allows you to enter and exit favorable positions without combing through charts 24/7.

BNB has a market cap of more than $56 billion, trailing only Bitcoin and Ethereum. The BNB token has a variety of use cases, particularly within the Binance ecosystem, which is the world’s largest centralized exchange by trading volume.

In addition, BUSD is a US-regulated stablecoin and fully backed by US dollars. It is the third largest method of payment and store of value.

Practical example

The rebalancing is done so that the index maintains a fixed share in BNB compared to the total value of the index.

For example, if $100K is deposited into the BNB-Balance Index, it will hold $50K in BNB and $50K in BUSD. The index will track market conditions and rebalance when:

  • The price of BNB has increased If the BNB share of the index is worth $60K and BUSD is worth $50K, the index will adjust the weighting back to 50/50. This means that it would SELL $5K worth of BNB, which would rebalance the holding to $55K ETH / $55K BUSD.
  • The price of BNB has decreased If the BNB share of the index is worth $40K and the BUSD is worth $50K, the index will automatically BUY $5K worth of BNB, thereby rebalancing the holding to $45K BNB / $45K BUSD.
Charges for this Index

The management and performance fee is charged monthly. Both fees are charged on profits only. The above fees do not include transaction costs. All fees are visible on the FNDZ platform.

The Binance Coin Index is an easy way to hold BNB without following the market closely. The index gives you full control over your assets, which you can withdraw at any time.

Take advantage of indexing at FNDZ.

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