What's Hot

    a very unprofitable cryptocurrency

    June 30, 2022

    Elrond (EGLD) creates an NFT platform for Romania

    June 30, 2022

    Warren Buffet: His bank Nubank becomes conducive to cryptocurrency trading

    June 30, 2022
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    THECRYPTNEWS
    • Home
    • News
    • Guides
    • NFT
    • Analysis
    THECRYPTNEWS
    Home » 5 Crypto Index Tokens That Allow You to ‘Buy the Market’
    News

    5 Crypto Index Tokens That Allow You to ‘Buy the Market’

    AdminBy AdminJanuary 5, 2022No Comments5 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Source: AdobeStock / Dilok

    Index trackers are among the most popular investment vehicles among retail investors. Instead of trying to beat the market by selecting a handful of securities or assets, passively investing in a market’s index typically yields better returns.

    Crypto investors also have the ability to “buy the market” or invest in certain market segments by purchasing crypto index tokens.

    Read on to learn more about crypto index tokens and discover a list of leading index tokens you could add to your crypto portfolio.

    What is a Crypto Index Token?

    In traditional finance, an index fund tracks the performance of a specific market benchmark, such as the S&P 500, NASDAQ, or EURO STOXX 50.

    Crypto index tokens track the performance of a specific market index, which typically tracks a subset of the global crypto markets.

    Before we look at the list of available crypto index tokens, let’s first look at the benefits of holding these tokens versus building your own portfolio from scratch.

    A simple investing process

    The process of researching individual cryptoassets can be time-consuming and often requires significant technical and financial knowledge. This can prove to be a challenge to some investors. A crypto index token allows investors to gain broad exposure to the crypto market or a specific subset of the market, simplifying the investment process for newcomers.

    One-click diversification

    If you are looking to build a diversified crypto portfolio that provides you with broad crypto market exposure, buying an index token allows you to do that with one single purchase.

    Trading cost reduction

    When you are buying a basket of cryptoassets, you will have to pay trading fees for each purchase as well as exchange withdrawal fees to store your assets in a personal wallet. You can drastically reduce the impact of these fees by purchasing one or several index tokens as opposed to dozens of individual digital currencies and tokens.

    Top Cryptocurrency Index Tokens

    Now, let’s take a look at five leading crypto index tokens you could add to your portfolio today.

    Total Crypto Market Cap Token

    Total Crypto Market Cap Token (TCAP) is an ERC-20 token that provides you with real-time exposure to the total cryptocurrency market capitalization.

    TCAP also allows you to earn fees by minting TCAP tokens and providing liquidity on decentralized exchanges (DEXes), as well as offering arbitrage opportunities.

    TCAP is pegged to the price of the total crypto market cap using Chainlink (LINK) oracles, which enable the token to aggregate several data points from top crypto data providers. The data is then pushed on-chain using Ethereum (ETH) smart contracts.

    You can mint the token on the Cryptex app or buy it on the SushiSwap (SUSHI) decentralized exchange. You can also obtain the token on the Gemini crypto exchange for custody.

    When minting TCAP you can speculate on longing or shorting the total crypto market cap. It is important to note that there is a 150% minimum collateral ratio to prevent you from being liquidated.

    There are zero fees charged for the trading of TCAP by the issuer on the secondary market. Moreover, there are no issuer fees for minting new tokens in the Cryptex protocol. However, you will be charged a 1% burn fee, which is allocated for future Cryptex decentralized autonomous organizations (DAO) developments.

    TCAP Price Statistics:

    • Current price: USD 339.56
    • Market capitalization: USD 7,722,306.87

    DeFi Pulse Index Token

    DeFi Pulse Index (DPI) is a cryptoasset index that tracks the performance of digital assets within the decentralized finance (DeFi) industry. The index is weighted based on the value of each portfolio constitute’s circulating supply. DPI aims to track DeFi projects that have a significant following and continue to invest in R&D.

    The index included 10 tokens including; COMP, LEND, MKR, YFI, SNX, REN, LRC, KNC, BAL, and REPv2.

    DPI Price Statistics:

    • Current price: USD 341.77
    • Market capitalization: USD 192,052,983.46

    NFT Index Token (NFTI)

    NFT Index Token (NFTI) is a digital token designed to track the performance of digital assets in the non-fungible token (NFT) space. The index is weighted according to the value of each digital asset’s circulating supply and liquidity. The focus of the index is to track NFT protocols that contribute to the space through development and maintenance.

    The underlying tokens tracked by the index include MANA, WAXE, SAND, MATIC, AXS, ENJ, ILV, and YGG. NFTI is maintained and upgraded by the governance token, GNFT.

    NFTI Price Statistics:

    • Current price: USD 3,253.60
    • Market capitalization: USD 7,237,467.27

    CRYPTO20 Index Token

    CRYPTO20 Index Token (C20) is a digital asset index that allows you to track the performance of the top 20 cryptoassets. The underlying digital assets include ETH, ADA, BTC, BNB, SOL, DOGE, SHIB, AVAX, LUNA, and many more.

    The C20 tokens are directly tied to the underlying digital assets, but you can opt to liquidate using a smart contract provision. This serves to ensure the asset price never falls below the token’s share of the underlying asset.

    You can trade C20 tokens on Invictus Capital, HitBTC, and SushiSwap.

    C20 Price Statistics:

    • Current price: USD 4.85
    • Market capitalization: USD 193,199,044.05

    Degen Index Token

    Degen Index (DEGEN) is a token representing an index of the most promising Ethereum projects that have the potential for future growth. DEGEN is currently in beta mode and more details may be forthcoming in the coming months.

    DEGEN Price Statistics:

    • Current price: USD 6.01
    • Market capitalization: na

    While index tokens are not a one-size-fits-all solution for all crypto investors, they provide a cost-effective way to gain exposure to specific market segments, such as large-cap coins, DeFi, and the NFT market.

    ____

    Learn more:
    – How Investors Should Approach Bitcoin, According to Ark Invest
    – How to Invest in Crypto Exchanges: Top 3 Options

    – 5 New Blockchain Funds You Could Invest in Today
    – Top 7 Bitcoin & Crypto Mining Stocks You Could Add to Your Stock Portfolio

    – How to Earn Interest on Stablecoins: A Beginner’s Guide
    – How to Buy Virtual Land in the Metaverse: A Beginner’s Guide

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Admin
    • Website

    Related Posts

    Work on a Multi-CBDC Platform Has Revealed ‘More Questions Than Answers’ – BIS

    March 22, 2022

    Japan’s Crypto Exchanges Set to Speed ​​Up and Simplify Crypto Listing Process

    March 22, 2022

    Crypto Donations To ‘Freedom Convoy’ Evade Government Seizure

    March 22, 2022

    DeFiance Founder’s USD 1.76M Loss is a Lesson For NFT Investors

    March 22, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Recent Posts

    • a very unprofitable cryptocurrency
    • Elrond (EGLD) creates an NFT platform for Romania
    • Warren Buffet: His bank Nubank becomes conducive to cryptocurrency trading
    • Vitalik Buterin explains why and how he created Ethereum (ETH)
    • Florida: Orlando wants to become the center of the metaverse

    Recent Comments

    No comments to show.

    Subscribe to Updates

    Get the latest sports news from THECRYPTNEWS.

    Advertisement

    Archives

    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021

    Categories

    • Analysis
    • Guides
    • News
    • NFT

    The leader in news and information on cryptocurrency, digital assets and the future of money, THECRYPTNEWS is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
    We're social. Connect with us:

    Facebook Twitter Instagram Pinterest YouTube WhatsApp Reddit
    Top Insights

    a very unprofitable cryptocurrency

    June 30, 2022

    Elrond (EGLD) creates an NFT platform for Romania

    June 30, 2022

    Warren Buffet: His bank Nubank becomes conducive to cryptocurrency trading

    June 30, 2022
    Get Informed

    Subscribe to Updates

    Get the latest creative news from THECRYPTNEWS

    Facebook Twitter Instagram Pinterest
    • Home
    Copyright © 2021 Thecryptnews.com

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT

    DMCA - Terms and Conditions - Privacy Policy