Investing in cryptocurrencies can be complicated as there are simply too many details to keep in mind.
With the base of a good investment being the diversification of portfolio, YDragon came up with an easy way to do it.
The project is creating crypto indexes that are based on multiple assets, and then allows users to invest in them.
YDragon is a project that came up with crypto indexes to allow investors to reduce risks, increase their chances of earning a profit, and simplifying portfolio diversification.
Investing in cryptocurrency assets, or really anything else, is complex and difficult, and anyone telling you otherwise is either trying to scam you or is simply showing off.
Of course, by investing, we don’t mean the actual process of buying assets, but rather, gathering the information needed, coming up with a working strategy, keeping track of all the new events and price movements, risk managing, and more. Doing it all even for a single asset is difficult and complicated, let alone for a group of assets.
And, as an investor who knows what they are doing can tell you — the most important step when investing in anything, and especially crypto is to diversify your investment portfolio. This is important because the crypto industry is extremely volatile, and any asset can go up or down, often with little to no warning, and if investors spend their entire investment on a single asset, they can easily be ruined when the price moves.
This is why investing in a group of assets is much safer. Even if one of them goes down, that is only a small percentage of one’s investment, and it is a loss that investors can afford to live with. But, as mentioned, it is near impossible to keep track of all the details regarding all the different assets, which is why a DeFi project called YDragon emerged, hoping to simplify the matters.
How can YDragon help investors?
In traditional finance, investing in various indexes and baskets of assets has been around for so long that it is basically a norm these days. YDragon decided to offer the same possibility to cryptocurrency investors. The project’s developers are investors themselves, and as such, they are very well aware of how costly and difficult it is to navigate and invest in the crypto industry.
On one hand, users need diversified portfolios to reduce the risk of investing. On the other hand, each individual investment requires a lot of research, separate transactions, all of which come at a cost, the trouble of storing the coins and tokens safely, and let’s not even mention hopping between exchanges in order to track down all the assets one wants to invest in.
YDragon makes the investment process much simpler by offering access to a unique ecosystem of financial products aimed at two things — yield optimization and risk reduction. Basically, the project is creating crypto indexes that consist of multiple different underlying assets.
So, instead of investing into each asset individually, which is costly, time consuming, and difficult for a variety of reasons, the project allows users to simply purchase tokens that represent specific indexes. By investing in these index tokens, the investor is basically investing in all tokens that are contained within the index, including tokens from different blockchains, and so the index’s overall performance is what determines whether they will make profits or losses.
Following its launch on BSC, YDragon came up with a plan to create an initial index that can later be changed or expanded upon, while new indexes tracking different kinds of assets will be emerging over time. In the future, the project will have an internal council set up that will be in charge of coming up with changes to existing indexes, creating new ones, and voting on various decisions. After an index has been formed, a minting event is held during which users can buy shares in an index that is shortly about to go live.
These minting events will bring their own benefits to the users who opt to participate, and the project will announce specific benefits prior to every event.