A popular example is CoinMarketCap, WorldCoinIndex and CryptoCompare. These sites are mainly used for instant pricing information they gave several cryptocurrencies but is also a good source of information for benchmarking, monitoring and comparing the growth of various assets cryptocurrency.
Depending on the criteria for listing an individual price index, they may provide details on all the coins and tokens available on the market or just certain people who meet the criteria, such as being available in the public exchange with a sufficient level of trading volume.
Most of the price index of crypto leading will, however, list the majority of coins available on the market and, therefore, a good way to keep your finger on the pulse of the entire market cryptocurrency at any given time, without having to data compiled manually from the hundreds of exchanges cryptocurrency individuals.
How is it different from traditional stock market index?
It’s basically the same principal.
Both show the financial health of an industry in which the investor has invested.
The biggest difference is, of course, the fact that the traditional stock market indices list pricing for shares in the company while the index crypto list price for the assets cryptocurrency info from various network-based blockchain.
Another difference is, where the price index cryptocurrency tend to register the majority of crypto tokens available on the open market, the traditional stock market indices will only list a number of stocks, with some common denominator among them – usually the type of sector or company size https://crypto-genius-reviews-guide.sitey.me/. This index is often seen as a snapshot to help investors gauge the health of the overall market.
The Standard & Poor’s 500 (S & P 500) in the United States list of the 500 largest US companies by market value, while the Stock Exchange Financial Times 100 (FTSE 100) consists of the 100 largest companies listed on the London Stock Exchange (by market capitalization).
On the other hand, the FTSE techMARK 100 only represents 100 innovative technology company on the London Stock Exchange, while the S & P Global 1200 Index Information Technology A list of companies in the IT sector.
What information can you expect to find in the price index cryptocurrency?
Generally, you’ll find the current market price of cryptocurrencies respectively, market cap – that is, the current price multiplied by the outstanding supply – and Volume 24H, which is the total trading volume of a particular coin in various markets lasting 24 hours.
Usually you can also click on the individual coins to find more detailed information. This can include circulating currents and maximum inventory cryptocurrency the graph that tracks the price performance over time and a list of all of the markets or exchanges on which the coins can be traded.
Although this is some general information you can expect to find, each of the different platforms and will provide different information, depending on their user base. If the trader targets a particular index today, for example, may display the highest and lowest price of the coins had been achieved during the last 24 hours, while other platforms are more in tune with the needs of long-term investors may provide information about the special features of the coins, such as whether it is a proof-of -Work (POW) or proof-of-stock (PoS) coin, whether it is focused on the delivery of money or tokenization assets, etc.
Where they get their data from?
The most common is the exchange of data sources cryptocurrency.
Cryptocurrency exchange is ground zero for the majority of trading activity. This is where the price of the coin will be established, depending on the buy and sell prices traders are willing to accept at one point in a particular market. Therefore the price of the exchange is the most accurate representation of market value reached coins.