Who’s the one to celebrate when the whole crypto rank is dropping down?
‘Long crypto, short banks’ seems to be one of the mottos of the crypto movement, symbolizing the belief that crypto potentially will grow significantly and bring its “hodlers” financial gains. However, throughout its quite short history, the crypto market has demonstrated that it can drop as rapidly as it can grow and pure ‘holding’ is not the secret of success. Indeed, the volatility of the crypto-market is one of the main obstacles to its mass adoption.
How to protect funds against abrupt drops if you’re not a day trader?
Imagine you have 1000 euro invested in Bitcoin and a couple of leading altcoins. Every morning you check how they’re doing and one day you wake up and realize that your funds have decreased by 20% due to an overnight Bitcoin price drop. You either try to sell off before it falls even lower or take a deep breath and decide to keep on hodling, hoping that soon it will grow again. Sound familiar?
Professional day traders know how to take advantage of every move of the market by using sophisticated tools for shorting and going long. However, if you’re not a day trader, reacting fast to the market moving may result in it being more complicated.
To fill in this gap, the Swiss fintech company Lykke has created an automated tool in the form of an erc20 token that protects its users against loses during down-trends. ‘Short-LyCI’ is a crypto ‘anti-index’ that grows when its crypto-constituents’ price falls!
How does it work?
‘LyCI’ means Lykke Crypto Index, it’s a family of investable crypto indexes available only on Lykke Exchange (LyCI, Smart LyCI, Pay LyCI). LyCI is an index that tracks the behavior of the top 25 crypto assets weighted by market capitalization. When the assets grow, LyCI indicates the growing trend. To benefit from the index growth, users can purchase the corresponding LyCI utility ERC20 token.
Short LyCI is exactly the opposite: it indicates the negative trend on the market. The more the crypto market goes down, the higher the negative trend, hence the higher the price of Short LyCI. Technically, the Short LyCI is also an ERC20 token, and you can purchase it as easily as any other token of the kind.
A unique chance to try Short LyCI without any investment!
Until Oct. 28, if you get KYC-approved on Lykke Exchange, you will automatically qualify for a raffle with prizes paid in Short LyCI.
Short LyCI (ticker BEAR) is available on Lykke Exchange in the BEAR/USD trading pair. Of course, holding Short LyCI can only protect you against loses during the down-trends on the market, and as soon as it resumes growing, Short LyCI will start decreasing in value. The good news is that in the LyCI family, there’s a tool for any trend that will allow you to increment your funds during any kind of price fluctuation!