The average investor underperforms the market, earning returns of about 50% lower than the stock market.
The massive amount of new financial products of the cryptomarket, coins and NFTs, further challenges the average investor. Crypto novices make a lot of mistakes, and most of them end up losing their money.
However, popular investment strategies from traditional markets are making their way to the cryptoverse. One of these is called Dollar Cost Averaging (DCA). The method, used in 401k retirement plans and other traditional investment vehicles, reduces time risk and volatility by investing a fixed amount regularly over a long period of time.
While the crypto industry is adopting a more investment approach from the traditional fintech world, the tools to allow investors to regularly and automatically DCA invest in diversified indices are lacking. Satoshi Index, a new NFT project coming to market on 16 February, has created a system to provide crypto investors with the same tools.
What is the index of Satoshi?
According to the official website, Satoshi’s Index is the first utility NFT to offer crypto investment automation. Their NFT tool invests in the most popular cryptocurrencies from their proprietary indices. This index tracks the most popular coins by trading volume on a monthly basis, allowing users to diversify into different types of coins with the DCA strategy.
it works like this
Unlike most subscription model businesses, where users have to pay a fee to gain access to a tool, Satoshi’s Index employs the rapidly growing sector for non-fungible tokens in a creative way.
The way it works is relatively simple. First, the user must purchase one of the Satoshi Index NFTs – they serve as a de facto license to access the trading tools. Once that is done, they pair the instrument with a preferred exchange – Coinbase and Binance are supported at launch – and determine the amount they wish to invest on a monthly or weekly basis.
So that’s all. From there, the tool invests in the top 10 cryptocurrencies based on trading volume. The coins remain in the user’s exchange account, and the device does not take custody of them at all.
Although developed as a utility NFT, the art inspiration for the project comes from the legendary blockchain investor Satoshi Nakamoto. Below is a sample of what the NFT looks like:
The collection will consist of 999 unique NFTs and will be ready on February 16, 2022. The NFT-linked crypto investment tool will be available on the Coinbase and Binance APIs at launch. The team is public, not anonymous, and available to chat in their Discord!
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