What Is Passive strategy?

Passive investing is a long-term trading strategy for building wealth by buying securities that mirror stock market indexes and holding them long term.

A passive strategy involves minimal trading in the market, with investors buying and holding a diversified mix of assets to match, but not beat, the performance of an index. The passive investing strategy is based on the premise that a low-cost, well-diversified portfolio will produce an average market return.

Often, in decentralised finance, passive strategies aims to beat risk-free rate without any additional exposure and drawdown.

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