Cryptocurrency has been around for some time and there are many articles and articles on the basics of cryptocurrency. Not only is cryptocurrency thriving, but it has opened up as a new and reliable opportunity for investors. The cryptocurrency market is still young, but mature enough to pour enough data to analyze and forecast trends. Although it is considered the most volatile market and huge gambling as an investment, it has already become predictable by a certain point and bitcoin futures are proof of that. Many stock market concepts are now applied to the crypto market with some tweaks and changes. This gives us another proof that many people accept the cryptocurrency market every day and currently more than 500 million investors attend it. Although the total market capitalization of the crypto market is $ 286.14 billion, which is approximately 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 existence of already established financial markets. . The reason for this is nothing but the fact that people have begun to believe in technology and products that support crypto. This also means that crypto technology has proven itself to the extent that companies have agreed to put their assets in the form of crypto coins or tokens. The concept of cryptocurrency became successful with the success of bitcoin. Bitcoin, once the only cryptocurrency, now contributes only 37.6% to the overall cryptocurrency market. The reason is the emergence of new cryptocurrencies and the success of projects that support them. This does not mean that bitcoin has failed, in fact the market capitalization of bitcoin has increased, rather it shows that the crypto market has expanded as a whole.
These facts are enough to prove the success of cryptocurrencies and their market. In fact, investing in the crypto market is now considered safe, as some are investing as their retirement plan. Therefore, what we need are the tools for analyzing the crypto market. There are many such tools that allow you to analyze this market in a way similar to the stock market, providing similar indicators. Including market capitalization of coins, coin pursuit, cryptosis and investing. Even if these indicators are considered simple, they provide important information about the crypto in question. For example, a high market capitalization indicates a strong project, a high 24-hour volume indicates a high demand, and a circulating supply shows the total amount of coins of this cryptocurrency in circulation. Another important indicator is the variability of crypto. The variability is how much the price of a cryptocurrency fluctuates. The cryptocurrency market is considered highly volatile, cashing in at some point can bring a lot of profit or make you pull your hair out. So what we’re looking for is crypto, which is stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered stable. Because they are stable, they must be strong enough not to become invalid or simply cease to exist on the market. These features make crypto reliable, and the most reliable cryptocurrencies are used as a form of liquidity.
As for the cryptocurrency market, variability comes hand in hand, but also its most important property, ie. decentralization. The cryptocurrency market is decentralized, which means that a fall in the price of one cryptocurrency does not necessarily mean a downward trend in any other cryptocurrency. In this way it enables us in the form of so-called mutual funds. This is a concept for managing a portfolio of cryptocurrencies in which you invest. The idea is to spread your investment across multiple cryptocurrencies so that you reduce the risk if a cryptocurrency starts on a bear
Similar to this concept is the concept of crypto market indices. Indices provide a standard starting point for the market as a whole. The idea is to choose the best currencies on the market and distribute the investment among them. These selected cryptocurrencies change if the index is dynamic and takes into account only the best currencies. For example, if the “X” currency falls to the 11th position in the crypto market, the index, which takes into account the top 10 currencies, will now not take into account the “X” currency, but will rather start considering the “Y” currency, which is took its place. Some vendors such as cci30 and crypto20 have tokenized these crypto indices. While this may seem like a good idea to some, others object due to the fact that there are some prerequisites for investing in these tokens, such as a minimum investment required. While others, such as cryptoz, provide the methodology and value of the index, along with the currency components, so that the investor is free to invest the amount he wants and choose not to invest in a cryptocurrency that is otherwise included in the index. In this way, the indices give you a choice to further smooth out the variability and reduce the associated 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 reached in the short period of its existence is incredible and sufficient proof of its authenticity. The biggest concern investors have is the volatility that has been addressed in the form of indices.