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What is the FNDZ Crypto Index and how does it work?
  • What is a Crypto Index?
  • What are the benefits of the FNDZ Crypto Index?
  • How does rebalancing work?
  • Which coins are part of the FNDZ Crypto Index?
  • What are the fees?
  • We’re here to help

Everyone loves a winner. If a coin has been successful, most people will naturally want to stick with it. But is this always the best approach? In trading, diversification is key. That’s why we’re introducing the FNDZ Crypto Index: a ready-made portfolio that automatically buys and sells coins as the markets change.

What is a Crypto 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 are the benefits of the FNDZ Crypto Index?

The FNDZ Crypto Index adapts your portfolio to changing market conditions without the need to check the charts 24/7. The index scans the market and adjusts the weighting of each asset based on price movements.

Indices are also a convenient way to diversify your portfolio. If one coin is performing poorly, there's a good chance another is performing well, which helps minimize your losses.

How does rebalancing work?

Rebalancing is the process of selling a coin and then using the proceeds to buy another coin. This is done to ensure that your portfolio remains diversified.

For example, suppose you split $20,000 equally between Bitcoin and Bella Protocol on May 24, 2022, when prices were $29,700 per BTC and $0.35 per BEL. You would then own roughly 0.34 BTC and 28,600 BEL. On May 30, 2022 prices reached $31,700 per BTC and $1.01 per BEL. Your BTC shares would then be worth $10,800 and your BEL $29,000. Thus, your BEL would be worth more than 70% of your portfolio.

In this case, there is too much risk in your portfolio. If the price of BEL goes south, your earnings would take a big hit.

To avoid this, the FNDZ Index will sell a portion of the coins that have risen sharply and buy coins that have fallen in value. This follows the guiding principle in trading: “sell high, buy low”.

Which coins are part of the FNDZ Crypto Index?

FNDZ Crypto Indices are made up of assets available on the BNB Chain. Depending on the Index, coins may be added, swapped, or removed based on their liquidity and market capitalization. All tradable coins must meet a minimum level of liquidity and trading volume. This gives users access to high-quality tokens with significant potential and market acceptance.

What are the fees?

There are two kinds of fees: performance and management fees. These fees are entirely transparent and are only charged on profits. There is also a minor transaction fee. It is a maximum of 0.2%, all of which goes towards operating the platform and trader tournaments.

We’re here to help

If you’re looking for a way to trade crypto assets without spending hours researching performance metrics and making complex decisions, the FNDZ Crypto Index can help you do this quickly and simply. The index takes the emotion out of trading and maintains a balanced portfolio for you.

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