Cryptocurrencies and Blockchain are the revolutions we are living with for a while. Increase in understanding of blockchain technology and the crypto market has created significant investment options for the investors around the globe. With the rise in market capitalization of cryptocurrencies, there come many challenges that include security for which much has already been done in the form of hardware wallets and decentralization, another such challenge is Market analysis for investors.
There are plenty of resources contributing in cryptocurrency analytics in many ways, but there is certainly a need for Cryptocurrency Index for investors to know how a specified benchmark of cryptocurrency prices is moving in order to give an indication of market trends.
Cryptocurrency Index is a standard point of reference, it is a measurement of the value of defined constituents of the crypto market. Its purpose is to give an insight of the movements of the crypto market in the way stock market indexes provide for the stock market.
Cryptoz.ai is one such platform providing Cryptocurrency Indexes on the basis of market capitalization and equal weighted. We compute indexes for top 10/25/50/100 components.
Market cap indices are most widely used capitalization-weighted indices. In market cap indices each component is given a weight based on its market capitalization and each currency weight is directly proportional to the market capitalization.
While bitcoin still have 40% of the total market share, there are many new crypto coins being launched every day. Cryptoz.ai works as the benchmark to this highly volatile crypto market. It computes indexes for top 10,25,50 and 100 cryptocurrencies on the basis of their market cap.
Equal weight indices give the same weight to all the components. The smallest component and the largest component have equal weights and hence they get the same space in index calculations.
Top x currencies on the basis of market cap are included for calculation of the Cryptoz-x. Due to the highly volatile nature of the crypto market, an index has to be rebalanced over the period of time, and so constituents of an index are rebalanced on the 1st of every month.
Cryptoz.ai provides index values from December 2013 till date so investors can analyze past trends and performance of indexes. This gives them insights into future investments. The base index value is kept as 1000 which has seen many fluctuations over the last 4 years. While there are already some indexes like CRIX, CCI30 available in the market, Cryptoz.ai is providing historical indexes as well as Cryptoz-x value every minute. As the digital currencies are future, their use will increase over the period of time and so the need for cryptocurrency indexes.