How Do Crypto Indices Work?
A crypto index is typically made up of a weighted average of several cryptocurrencies, with the weight assigned based on their market capitalization. The market capitalization of a cryptocurrency is determined by multiplying the current price of the cryptocurrency by the total number of coins or tokens in circulation.
Some popular crypto indices are Crypto20, Bitwise 10 Crypto Index, Bloomberg Galaxy Crypto Index (BGCI), Metaverse Index (MVI), Crypto Rupee Index (CRE8), Interest-compounding ETH Index, CRIX Crypto Index, DeFi Pulse Index, Bitcoin Flexible Leverage Index, Ethereum Flexible Leverage Index, etc.
All these Crypto Indices track a variety of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and other popular cryptocurrencies.
What are Crypto Indices?
Crypto indices have become increasingly popular in recent years as a way to track the performance of the cryptocurrency market as a whole or a specific segment of it. These indices are a combination of cryptocurrencies and their prices, which are weighted and adjusted based on different factors.