A: An index is a group of assets, like stocks or cryptocurrencies, to show how a market or sector is doing overall. In stock markets, indices like the S&P 500 or Nasdaq provide a snapshot of market performance, representing specific sectors or themes. Index allows investors to gain broad exposure to a market or sector without needing to research and invest in individual assets. They offer diversification, reducing the risks associated with holding a single asset.
As the cryptocurrency market is still in its early stages, indices provide a structured way to understand and invest in it, similar to how traditional stock market indices work. They allow us to analyze and engage with the market through two key perspectives:
Crypto market indices, like the Crypto10 Index, enable diversification by including a mix of top cryptocurrencies. This gives you exposure to the overall performance of the largest and most established digital assets, spreading risk across multiple coins rather than relying on a single investment.
Sector-specific indices focus on particular areas of the crypto market, such as DeFi, Layer 1 blockchains, or memecoins. These indices let you invest in high-performing or high-potential sectors. For instance, a DeFi index highlights projects revolutionizing financial systems through blockchain, while a memecoin index tracks assets with the potential for outsized gains driven by social trends.
Crypto indices offer a clear, organized way to track market trends, assess growth opportunities, and diversify investments—making them an essential tool for navigating this dynamic market.
A:
We select cryptocurrencies with the highest market cap in that sector or group(market cap = cryptocurrency's price × total circulating supply of cryptocurrency).
This ensures that the most significant and influential assets in a sector are represented.
A: An index value is a single number that represents the combined performance of all the assets in an index. It’s calculated based on the information of the assets in the index like price and supply(number of shares) A rising index value means the group of assets is generally increasing in value, while a falling value indicates a decline.
A: The index value is calculated using the sum of marketcaps of all cryptocurrencies in the index and dividing with a scaling factor to bring the index value to a practical range. Here is an example of how we calculate index price for our crypto10 index
| Scaling Factor | 100 million (100,000,000) |
| Sum of MarketCap of all cryptocurrencies in Crypto10 Index | $3 trillion (3,000,000,000,000) |
| Index Price Formula | Sum of MarketCap of all cryptocurrencies in Crypto10 Index / Scaling Factor |
| Index Price | $3 trillion / 100 million = 30,000 |
A: Index data is updated every 3 minutes as of now, with candles generated for various intervals, ensuring users have up-to-date information on market trends."