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Top Crtptocurrency Indices

Jessica Kerry


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Hi Jessica,
Several benefits are associated with trading a basket of cryptocurrencies, compared to say, several individual currencies. Trading in crypto indices makes it cost-effective for you to take a position in a sector. This is without actually opening a position upon an individual crypto.
In other words, a position taken using a crypto index assists in spreading your risks away from single coin exposure.
A crypto index consists of several cryptocurrencies that have been grouped together and weighted through market capitalization. A cryptocurrency market cap is arrived at through multiplying several units in a specific coin by the prevalent value against the pound sterling.
In short, whenever the crypto value goes up, so does its market capitalization, and in tandem, the crypto index will increase. Conversely, a fall in crypto price against pound Sterling makes the crypto index value decline.
Top crypto indices involve regular monitoring by brokers who make adjustments to constituent weightings when called for.  Such brokerages keenly observe an index for soft or hard forks and make adjustments on the cryptos where necessary. When such adjustments occur, proficient brokerages change index divisors, ensuring no major impacts on index prices.

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