Popular cryptocurrency index review

Endy Callahan

Cryptocurrency indices are summary indicators that are calculated based on the value of a particular group of coins. Thanks to them, investors and traders determine the general trends in the market or in the chosen area. Often indices are used to make decisions about buying or selling coins. They help to form a balanced cryptocurrency portfolio.

The major cryptocurrency indexes

CAMCrypto30. The FTSE 100 and Russell 2000 stock indices are used to calculate the index. The basis for the calculations are the 30 largest cryptographic currencies in terms of capitalization. Each month, the index is used to determine the fluctuation in value in the basket of cryptographic assets, coin prices are recalculated every five minutes. This allows users to have the most up-to-date information.

Bit20. It is represented by smartcoin based on the Bitshares platform. The indicator is calculated based on the capitalization of the largest 20 cryptographic currencies (does not include Ripple). If new coin appears at the top of the rating, the index will include it.

CRIX. The full name is IndeX. It has been continuously calculated since 2016 and introduced by the University of management Singapore and Humboldt University Berlin. The aggregate figure includes 20 crypto assets with the highest capitalization. Recalculations is carried out in real time.

CCI30. The index was launched in autumn 2017. Its calculation uses data on the 30 largest cryptographic currencies. Each of them has its own weight. The index basket is recalculated every 3 months, the weight of the component - monthly. Thanks to the index CCI30 you can create balanced portfolios, reduce volatility and risk and also increase profitability.

Other cryptocurrencies indexes

Investors and traders also use such indicators:

  • DCI and  DCI50
  • DLT10
  • CRYPTO20
  • ICEX Top10
  • HOLD 10

DCI and DCI50 are calculated similarly to the stock indices. The first one includes 10 crypto assets and tokens by capitalization, the second one – 50. Bitcoin is not used in the calculation of the indicator. Indices are recalculated every quarter. It uses tokens and coins that have had the largest capitalization in the last 90 days.

DLT10 index includes the ten largest coins based on its market capitalization. It is recalculated every day at 17: 00 GMT. The indicator provides information about the interaction between the largest coins in the market.

CRYPTO20 index became the first hybrid indicator. Its calculation uses data on the 20 coins with the largest capitalization, the balance is reviewed every week. The index has its own token, C20, it reports the share of the investor in CRYPTO20. If someone wants to buy coins from the TOP 20 in the market, it is a great source.

The wide range of cryptocurrency indices based on different metrics is useful to determine right way to diversify your investment portfolio and to get a feel of market trends. Try to choose the most convenient and informative indexes. They will help you choose the best time to buy and sell cryptocurrencies.