This index includes the 35 largest cryptocurrencies by market capitalization, allowing you to distribute risks and simplify the process of investing in multiple projects simultaneously. Let's figure out how it works and how you can earn with this feature.
What is the Top 35 index? 🤔
The Top 35 index is a tool that includes the 35 most popular and liquid cryptocurrencies, often changing based on their market capitalization. Thus, the index automatically updates and is focused on assets with high demand and a stable history.
How does it work? 🔄
1. Buying the index: You buy an index consisting of 35 cryptocurrencies. This frees you from having to manually select and manage each individual coin. Everything happens automatically.
2. The system organizes once a month: Every month, the system reviews the index composition and adjusts the proportions of cryptocurrencies in the index. Thus, assets that have significantly changed their market capitalization may either be increased or excluded from the index.
3. Proportional distribution: Each coin in the index has a certain share, which changes based on market conditions and capitalization. This helps evenly distribute your capital across the most stable coins.
Why is this beneficial? 📈
1. Diversification: Instead of investing in one or two coins, you automatically diversify your investments across 35 cryptocurrencies. This reduces risks.
2. Automatic management: All occurring changes and asset redistribution happen without your intervention. You don't need to manually track and adjust your portfolio every month.
3. Passive income: By investing in a whole set of cryptocurrencies, this can lead to an increase in the value of your portfolio without the need for daily trading.
Risks and warnings ⚠️
Market volatility: Like any investment in cryptocurrency, the index is also subject to market fluctuations, which can lead to both increases and decreases in value.
Non-guaranteed profit: Even the largest and most stable coins can experience volatility, which may lead to losses in a short time.
How to get started? 🚀
1. Go to the 'Exchange' section on the Binance platform.
2. Find the Top 35 coins index.
3. Buy the index and set up automatic asset redistribution for a month.
4. Check how the system adjusts the index composition once a month and enjoy passive income!
✅Conclusion: The Top 35 index on Binance is a convenient way to diversify and automate portfolio management for those who want to invest in cryptocurrencies but don't want to spend time analyzing and monitoring all coins. However, always keep in mind the risks associated with cryptocurrency market volatility and approach investments wisely. 🚀💡
