The cryptocurrency market, as topsy-turvy as ever since its fall from all-time highs in December 2017, can be difficult to gauge. It is the stock market on steroids, with prices fluctuating at a pace that would make the most jaded of stock traders nervous.
The heavy, 24/7 movement makes day trading supremely challenging and susceptible to losses. Furthermore, investors typically use Bitcoin as an indication of an altcoin’s performance, which provides only a limited and myopic understanding of how a token is performing – especially against its competitors within a niche.
A potent indexing solution would provide investors with greater clarity and insight into the market, removing all of the noise in performance metrics.
AltDex is a cryptocurrency indexing platform that has been developed with that express purpose. The platform gauges tokens on a set of criteria weighted by market capitalization. The average market cap from over 90 exchanges and 22,000 trading pairs is considered in weighting.
Launched on July 9, 2018, the AltDex platform has gone on to provide its users with tools and insights that make managing a diverse portfolio far more convenient than using a wallet, which offers limited performance insights. While market cap is the main filtering criterion for the inclusion of altcoins, other aspects also factor in.
As stated by the AltDex team itself, stablecoins, tokens subjected to egregious forks, and well-documented scam coins are excluded from the index. Tokens must also have a trading history of 1 month or greater and a circulating supply in excess of 5%. This filtering criteria ensures that only respectable projects with genuine products are a part of the indexed list.
3 major indexes were offered upon the project’s launch: the AltDex 100, AltDex Exchange Token Index, and the AltDex Privacy Coin Index. Recently, the team also introduced the AltDex Masternode Index.
The AltDex 100 (ALT100) analyzes the top 100 coins according to the aforementioned weighting criteria, with the added caveat that the trailing 30-day average of the daily trading volume must be greater than $30,000.
The other 2 indexes zoom in on 2 very specific but competitive niches in the market: the AltDex Exchange Token (ALTEXC) and the AltDex Privacy Coin Index (ALTPRV) gauge crypto exchange tokens and privacy tokens respectively. The former has 25 indexed coins whose market caps are above $5 million, while the latter has 17 indexed coins whose market cap is greater than $10 million.
The AltDex platform has steadily been adding new tokens to their index, which is reviewed and rebalanced on the first of every month. Most recently, Ethereum Classic and Reddcoin have been added.
— Ethereum Classic (@eth_classic) August 14, 2018
#ReddHeads, #Reddcoin #Core is pleased to announce that #RDD has been listed as part of the https://t.co/VKMWH9a6iw #ALT100 index of top rated and industry leading #cryptocurrencies. Thanks, @altcoindex! #ReddID #crypto #ecofriendly #staking #BTC #ETH #BCH #PoSV#Stake_on!
— Reddcoin (@reddcoin) August 14, 2018
By consistently releasing new features, the AltDex team hopes to transform the platform into a one-stop-shop for retail cryptocurrency investors.
Weighted indexes such as AltDex gives investors a more convenient and informative way of judging the performance of favored tokens and ones under consideration. By drawing attention to the metrics that matters, the platform accelerates investment decisions by sharply defining choices.