Binance Cryptocurrency INDEX Fund Review – what is Index Fund, Top 10 equal weighted constituents,Investment plan,Binance full work flow methodolgy and full detailed process.
Binance being one of the Top cryptocurrency exchange market in the world has been dominating the market from quite long. Binance not only has gain trust of the people around the world even the government of many countries have accepted Binance as their legal crypto currency exchange in the market.
Cryptocurrency exchange, Binance has always been innovative with the cryptocurrency driven products and always working one mile head to deliver top notch products for the users. After the staking, auto investing and many other features binance has now launched Cryptocurrency based index funds which is one of the unique in its own industry.
We have decided to review the Binance Index fund in detail with you, as we can see the coin market industry has seen a rapid growth in different products and the competition coming along with them.
What is Index Fund ?
An index fund is a type of exchange traded fund which monitors market indices and constitutes the top most contributors of the market indices. It was basically first started in US Stock market to track the indices. With the time, Index funds has evolved over the years and their features have certainly given benefit to the investors. The minimizing the tracking error and the expense ratio was the overall fuss in the funds traded over stock market or any other exchange traded funds.
What is Cryptocurrency Index Fund ?
An Cryptocurrency Index fund is a fund which tracks crypto market indices with the help of top constituents order and adjust accordingly. It is basically tracks the top order of cryptocurrencies or top tokens/coins in the market and adjust the tracking error accordingly.
Binance Cryptocurrency Top 10 Equal Weight Index Fund
Binance, World largest cryptocurrency exchange has launched first of its unique Equal weighted Top 10 cryptocurrency index fund to track the market .It will give investors opportunity to auto-invest on the binance platform. Binance index fund will monitor the top 10 coins or token performance with their market capitalization (USD) and adjust the tracking error accordingly.
Binance Top 10 Equal Weight Index fund Constituents
- BITCOIN
- ETHEREUM
- CARDANO
- BINANCE COIN (BNB)
- LITECOIN
- TRON
- POLYGON
- SOLANA
- POLKADOT
- XRP
These above coins are been listed in the index fund currently however, it totally depend on the market escalation and changes in the past 30 days.Index fund criteria is almost similar to the Stock trading exchanges and market rules.
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Why you should invest in Cryptocurrency Index fund ?
- Broad Market – More choices to track instead of one crypto coin or token
- Market fall saver – At the time of market fall ,it saves you in bearing more losses.
- Long term Investment – It works as eight wonder of investing in long run.
- Less Risk – Risk involved is less due to the risk spreading factor to Top 10 coins.
Binance Index Fund Full process Methodology Explanation Guide | How does it work
Binance has disclosed the full process of first Top 10 cryptocurrency Index Fund Methodology and work flow chart process on their website. Let us explain you on how does it work in below 10 points :
Eligibility
Filtering
Liquidity
Ranking
Selection
Weighting
Maintenance
Rebalancing
Calculation
Dissemination
By the process of above 10 points work flow Binance Index fund will operate.
Disadvantages of Index Fund
- Slow Growth
- Time factor
- Pitfall for short term investing.
How to invest in Cryptocurrency Index fund | Binance index fund investment full process
Open account or Sign Up
Open Your Binance account or Id with your credentials if already signed up.If you are a new user, first sign up with your information and finish all your onboarding process over Binance Platform.
Select Earn Option
After opening the home page of your Binance app ,select the “EARN” option from Binance app Home page.
Choose Auto Invest
After selecting earn option, one new page will appear with many options however, we need to look for AUTO-INVEST option and select it.
Link with Index fund
Pop message or ads will be running after you choose auto invest ,however you need to choose the Option Link Index Plan where you will asked to read the details before getting started.
Linked
You will linked successfully with index plan over binance platform .Your investment will be auto debited for investing in Index fund.
Binance Index fund Final Review
Conclusion : Index funds are great opportunities to invest for long run ,however, for know nothing investor it is always been advised to do the market research before analysing any opportunity. Index funds have their pros and cons according to the investor need .It has been seen that index funds are always good opportunity to secure the heavy transactional fees or expenses within the particular product. Binance is a great platform to provide its one of the unique product to the crypto industry with Index fund. Binance Index fund progress will be seen in the coming years according to how market is going to perform in long run. We highly recommend to keep learning more about the products like crypto index funds and Invest accordingly to your needs.
What is Binance Crytocurrency Index fund ?
It is a Binance exchange trade fund which tracks the Top 10 constituents of Crypto market indices.
What are the constituents of Binance Top 10 equal weighted index fund ?
It keeps on changing according to the market cap. For current list ,read the above article.
How to invest in Binance Cryptocurrency index fund ?
By auto investing,check the full process above.
When did binance will track the index fund constituents ?
After every 30 days.
Note : Not Financial Advice
DOLLAR STREET EDITOR
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