CoinoIndex – Dow Jones for cryptocurrencies
For the past number of years cryptocurrencies have come and gone. Thousands of cryptocurrencies, commonly referred to as alternate currencies or simply â€śalt coinsâ€ť have been created, and many have already perished into the deep hole of crypto scams, abandoned projects and forgotten dreams and ambitions. After the dust settled the community was left with a group of dedicated developers who worked on legitimate projects.
Due to the creation of these alt coins came the ability to build a portfolio based on the top 20 trading cryptocurrencies (aside from bitcoin) and create an index to provide market liquidity surrounding alts and the value held against BTC.
Such portfolios already exist in traditional finance and an index containing the top 20 alts, by market capitalization, resembles what the Dow-Jones represents in the stock market. The result is CoinoIndex – a portfolio built of alternate cryptocurrencies, each with over 1 mil USD in market capitalization.
After its successful launch in the summer of 2015, CoinoIndex showed growth within the alt coin market only to lose momentum and fall below its initial value of 1000. The interesting data received from the site can show a downward trend for investments in the alt coin market versus that of the bitcoin market since it’s creation. In other words, in recent months we have seen a decline in people investing in alternate currencies.
The benefit of such an index allows for an investor to purchase shares in the top performing cryptocurrencies on the market without suffering the volatility found in each supporting coins market. This reduces risk and simplifies the trading process. Invest in the hope the entire alt coin ecosystem gains in value, while leaving out the risk you could have chosen the wrong coin to get into.
Investing in the index could prove to be less lucrative, however turns out to be more secure than holding specific alternate currencies. The recent upward movement of bitcoin has people thinking we may just see the same result within the alt coin markets. If that’s the case, it could prove to be a profitable time to pick up some CoinoIndex.
View the current price calculated in real time over at CoinoIndex.com
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