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coingabbar

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With the advent of the IC15 Index, Indices based on Crypto are becoming increasingly popular. The IC15 index shows an index and index of 15 cryptocurrencies with a specified weighted average formula. this index gained a lot of popularity because of the niche it created. Actually, the base behind the formation of this index is pretty simple. – PowerPoint PPT presentation

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Updated: 15 February 2022
Slides: 8
Provided by: coingabbar
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Title: coingabbar


1
Crypto Index
  • Why is it good to have a Crypto Index?

2
Why is it good to have a Crypto Index?
  • With the advent of the IC15 Index, Indices based
    on Crypto are becoming increasingly popular. The
    IC15 index shows an index and index of 15
    cryptocurrencies with a specified weighted
    average formula. this index gained a lot of
    popularity because of the niche it created.
    Actually, the base behind the formation of this
    index is pretty simple. The index takes the
    weighted average of the market capitalization of
    the selected cryptocurrencies and presents its
    variation over a period of time which in this
    case, is on a continued basis.

3
What is an Index?
  • The index is basically considered to be a
    representation of the overall market condition
    which is represented by the values of select
    items which are seemingly the representation of
    the whole lot. this makes the index an indicator
    of the overall market performance.
  • We can take the examples of various indices in
    this case like the nifty, which is a weighted
    average index of the share prices off 50
    companies which are reasonably considered to be
    the combined representation Of all these stocks
    listed on the exchange.
  • Similarly, the wholesale price index, which is
    considered to be the barometer of inflation in
    India, Is calculated on the basis of Changes in
    the moving prices Of the underlying commodities
    listed for the purpose.
  • An index is calculated by the percentage change
    in the combined value of the assets listed in the
    representative list, thereby providing valuable
    insight into the approximate change in the
    overall market position of the underlying list of
    assets.
  • Hence, any change in the index value will denote
    that the combined value of the listed assets has
    moved by a certain percentage.

4
What is a crypto index?
  • Having an index plays its own role in the market.
    It becomes very difficult to judge the overall
    performance ofthe market in bits and pieces.
    Hence it is always good to have an index that can
    combine the position and can show the overall
    change in quantifiable terms.
  • This is the place where the index plays a very
    important part. The index comes up with the basic
    representation of the overall progress of the
    market.

5
Generally, the indices are divided into different
representations. As we can see in the case of the
national stock Exchange (India), the
representative index is nifty. However, to depict
the changes in the overall growth on a sectoral
basis, a number of different indices are used
separately. The examples can be nifty smallcap,
nifty midcap, and other indices which are
specific to the sectors like IT, Health, Banking,
etc. These indices represent a specific segment
of Industry the performance of which can be
judged distinctly from the leaders who are
performing extraordinarily. It is always good
to have an index to act as a representation of
the overall market scenario as it guides us to
assess the way the market is going. Also, any
Index will provide a reasonable estimate of the
overall performance of the Constituents of the
market representing the Index. Although news
and events have different impacts on different
Crypto Assets, there is always a general trend
that follows after the news or event. An analysis
of the change in theIndex can make the users
deduce the right course of action to follow in
case of any given situation.
6
Conclusion
  • Although any Index does not represent the
    performance of the complete market it gives a
    fair estimate of the trend that can be analyzed
    to have a reflection of the way in which the
    market is going.
  • Also, since the Indices are an easier way
    to assess the changes and act accordingly, it's
    better to follow an index for better
    comprehension.
  • But we need to keep a few things in mind before
    relying on any Index
  • 1.       The constitution of the Index
  • 2.       The basis behind the inclusion of
    constituents
  • 3.       The weights given to such constituents
  • Because, if the investments that you made
    are having a fair representation in the Index,
    then only thatParticular Index is good for you.
    Else, go for something else that reflects your
    investments fairly.
  • Coin Gabbar is coming up with a number of
    Indices that the investors can choose on the
    basis of their portfolio and interest. The
    Indices will be the true representation of the
    category wise scenario of the market progress.

7
Thank You!!
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