The average investor underperforms the market, earning nearly 50% less returns than the stock market.
The cryptomarket’s dizzying amount of new financial products, coins, and NFTs, challenges the average investor further. Crypto novices make plenty of mistakes, and the wide majority of them end up losing their money.
However, popular investment strategies from traditional markets are making their way to the cryptoverse. One of them is called Dollar Cost Average (DCA). The method, used in 401k retirement plans and other traditional investment vehicles, reduces timing risk and volatility by regularly investing a certain amount of money over a long period of time.
While the crypto industry has been adopting more investing approaches from the traditional fintech world, tools to allow investors to regularly and automatically DCA invest in diversified indexes have been lacking. Satoshi’s Index, a new NFT project that will hit the market on February 16th, has created a system to provide crypto investors with that very tool.
What is the Satoshi Index?
According to the official website, Satoshi’s Index is the first NFT utility offering crypto investment automation. Their NFT tool invests in the most popular cryptocurrencies from their proprietary index. This index tracks the most popular coins based on trading volume on a monthly basis, allowing users to diversify into a variety of coins with a DCA strategy.
Here’s How It Works
Unlike the majority of subscription model businesses where users have to pay a fee to get access to a tool, Satoshi’s Index employs the booming sector for non-fungible tokens in a rather creative way.
Operation is relatively simple. First, the user must purchase one of the Satoshi Index NFTs – they work as a de facto license to access the trading tool. Once done, they pair the tool with the preferred exchange – Coinbase and Binance are supported at launch – and set the amount of money they want to invest on a monthly or weekly basis.
That’s pretty much it. From there, the tool invests into the top 10 cryptocurrencies by trading volume. The coins remain on the exchange account of the user, and the tool takes absolutely no custody of them.
Although developed as a utility NFT, the artistic inspiration for the project comes from legendary blockchain investor Satoshi Nakamoto. Below is an example of what NFTs look like:
The collection will consist of 999 unique NFTs and will mint on February 16th, 2022. The crypto investment tool tied to the NFT will be available on Coinbase and Binance APIs at launch. The team is public, not anonymous, and available in their Discord to chat!
