Cryptocurrency has been around for some time, and there are several articles and articles on the basics of cryptocurrency. Cryptocurrency has not only prospered, but also opened up as a new and reliable opportunity for investors. The crypto market is still young, but mature enough to infuse enough data to analyze and predict trends. Although it is considered the most volatile market and a huge game as an investment, it has now become predictable up to a point, and bitcoin futures are proof of that. Many stock market concepts are currently being applied to the crypto market with some tweaks and changes. This gives us another proof that many people are entering the cryptocurrency market every day, and there are currently more than 500 million investors. Although the total market capitalization of the crypto market is $ 286.14 billion, which is about 1/65 of the stock market at the time of writing, the market potential is very high given the success, despite its age and the availability of already established financial markets. The reason for this is nothing more than the fact that people have begun to believe in technologies and products that support the crypt. It also means that crypto technology has proven itself and so much so that companies have agreed to place their assets in the form of cryptocurrencies or tokens. The concept of cryptocurrency has become successful with the success of Bitcoin. Bitcoin, formerly the only cryptocurrency, now accounts for only 37.6% of the total cryptocurrency market. The reason – the emergence of new cryptocurrencies and the success of projects that support them. This is not to say that bitcoin has failed, in fact the market capitalization of bitcoin has increased, rather it indicates that the crypto market has expanded as a whole.
These facts are enough to prove the success of cryptocurrencies and their market. And in fact investments in the Crypto-market are now considered safe to the extent that some invest in their retirement plan. So further we need tools to analyze the crypto market. There are many such tools that allow you to analyze this market in the same way as the stock market, providing similar indicators. Including market capitalization of coins, coin stalker, cryptoz and investment. Even if these figures are simple, they provide important information about the crypt under consideration. For example, a high market capitalization indicates a strong project, a high 24-hour volume indicates high demand, and a circulating supply indicates the total number of coins of this crypt in circulation. Another important indicator is the volatility of the crypt. Volatility is how much the price of a crypt fluctuates. The cryptocurrency market is considered to be very volatile, cash in the moment can bring in big profits or make you pull by the hair. So we are looking for a crypto that is stable enough to give us time to make an informed decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered stable. Being stable, they need to be strong enough not to become invalid or simply cease to exist in the market. These features make the crypto reliable, and the most reliable cryptocurrencies are used as a form of liquidity.
As for the crypto market, volatility goes hand in hand, but its most important property is decentralization. The crypto market is decentralized, which means that falling prices for one crypto does not necessarily mean a downward trend for any other crypto. This gives us the opportunity in the form of so-called mutual funds. This is the concept of managing the cryptocurrency portfolio in which you invest. The idea is to spread your investment over multiple cryptocurrencies to reduce the risk if any crypto starts on bearish.
Similar to this concept is the concept of indexes in the crypto market. Indices provide a standard benchmark for the market as a whole. The idea is to choose the best currencies in the market and distribute the investment among them. These selected cryptocurrencies change when the index is dynamic and takes into account only the best currencies. For example, if the currency “X” falls to the 11th position in the crypto market, the index, which considers the top 10 currencies, will now not consider the currency “X”, but will begin to consider the currency “Y”, which took this place. Some vendors, such as cci30 and crypto20, have tokenized these Crypto indexes. While for some this may seem like a good idea, others oppose it because there are some prerequisites for investing in these tokens, such as the minimum investment required. While others, such as cryptoz, provide the methodology and value of the index as well as the currency components, so the investor is free to invest the amount he wants and choose not to invest in a crypto otherwise included in the index. Thus, the indices give you the opportunity to further smooth volatility and reduce risk.
The crypto market may seem risky at first glance, and many may still be skeptical of its authenticity, but the maturity that this market has achieved in the short period of its existence is surprising and enough evidence of its authenticity. The biggest concern of investors is volatility, for which there was a solution in the form of indices.