coingabbar - PowerPoint PPT Presentation

Title: coingabbar


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Crypto Index

• Why is it good to have a Crypto Index?

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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.

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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.

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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.

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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.
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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.

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Thank You!!