Crypto market has just lost 3.49%Over the past day, $1,6 trillion has been reached. The cryptocurrency market is falling because of concerns about Russia, Ukraine and the Federal Reserve’s rate rises in the U.S. Diversification is vital for investors, regardless of whether there is a crypto winter.
NewsBTC spoke with James Wang, Amun’s Head for Tokens. He explained that index tokens provide instant access to liquidity assets of the highest performance and greatest risk, help diversify portfolios and spread risk.
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Amun Limited is an technology company which simplifies access. Passive investmentCrypto through Index Trading Products, which provide broad exposure To specific blockchain ecosystems or DeFi sector.
James Wang explained that although crypto index funds have not yet become popular as a trading option, they are still very much in demand.These tools are very helpful because they allow users instant access and control over a variety of assets, without the need for multiple manual purchases.
He noted that this greatly simplifies the purchasing process, cuts down on transaction fees associated with buying individual coins and offers a simpler way for investors new to crypto investing to get started.
Index trading products can be a tool in times of volatility because traders can move their exposure “towards a specific market segment that might be weathering the storm better than others.”
“Dollar-cost averaging for most investors is the best way to allocate capital. DCA can be used to spread risk across time. Index investing spreads risk out over time. By employing both, investors can gain crypto exposure without the headache of deciding when or what to buy.”
Wang noted that “Almost all the growth in the S&P 500 in recent years were driven by tech and biotech” and added that Amun believes “blockchains are the next chapter of the internet and having exposure in this emerging field could be as rewarding as investing during the early years of the internet.”
Crypto Mass Adoption
Wang believes that Wang was right during DeFi and NFT boom we are witnessing, “some people are probably more familiar with the NFT space than the crypto space in general.”
He believes index tokens will play an even bigger part in the future. if they become popular for offering “a chance to invest without having to exhaustively research an entirely new industry and provide easier financial management than investing manually.”
“Suppose we can get people to understand the benefits of investing in index tokens,” he said. “In that case, I think it could play a role in the mass adoption of cryptocurrencies — not least through their inherent simplification and ease of use. “
Wang added that, while it is certain that the panorama will shift in the future, “decentralized assets being traded on decentralized exchanges are the furthest away from regulatory scrutiny at the moment.”
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