I have been holding crypto and following the ecosystem for a long time, and I believe crypto will revolutionise the financial system and still has much potential to increase in value.
However until now my holdings have been mostly handpicked. In traditional investments I am a subscriber to passive investing and usually invest in broad index funds, and I want to apply that investment philosophy to my crypto holdings.
With this in mind I looked at some available crypto indices and none of them seemed to fill my needs, but looking at them helped me define some of the criteria for my own index:
I will be reproducing the index manually, so having too many assets will make the extra hassle of trading and storing the small-weighted assets not worth it.
I don't see the point of including stablecoins in a cryptoasset index. If I wanted to invest in the asset the stablecoin tracks I'd be better off holding the followed asset itself.
- Exclude centrally managed tokens
All indices I found included assets such as Binance Coin and OKB. I see investing in such assets as investing in the managing entity and not in the crypto ecosystem itself, as those tokens will be much more correlated with the business success of the entity than with the success of the ecosystem.
- Require reasonable trading availability
The asset must be available for trading in a reasonable number of exchanges.
- Market capitalization weighting
Free-float market cap weighting is the standard method of weighting whole-market indices. I have seen some indices that use square root of market cap weighting in order to not be so Bitcoin-heavy, but I am not convinced that that is a better representation of the market or that it would lead to better returns.
With these criteria in mind I evaluated the top coins by market capitalization. I decided to use CoinGecko as my main source, but I do cross check the values with CoinMarketCap and CoinCap.io to avoid some big flaw in CoinGecko's methodology.
Obviously the big guy is in.
I also have no issues with Ethereum.
Ripple is a bit too centrally-controlled for my taste and there's also the worry that the value of the XRP token itself may not be too correlated with the network's success, but I still consider it to be worthy for inclusion.
Tether is excluded due to being a stable coin and being centrally-controlled.
The only thing that worries me about Bitcoin Cash is that the community seems to be too worried about insisting that it is the true Bitcoin instead of developed, but I don't see any reason to exclude it given my criteria.
This is the first asset with which I don't have too much experience. Their website is a bit too heavy on buzzwords, but my research seems to show that it is a real network, there's no big problems with their whitepaper.
I personally have no idea how Bitcoin SV is so high in market capitalization, as I see it as just Craig Steven Wright's tool to strengthen his Satoshi claim, but the point of the index and the criteria is to remove my personal feelings from the decision, so it stays in.
Litecoin is one of the oldest assets around and I have no objection for it.
This is the first one where I am having a hard time deciding if it stays in or not. Its website is full of buzzwords. They have a whitepaper explaining how the network works, but I can't see it as much more than a centrally-managed token with a bunch of apps around it and no real value proposition. The company itself seems shady, having been through a name change, as it was previously called Monaco, the way their cards work smells heavily like a Ponzi scheme, they promise huge interest rates for staking random coins with them and the amount of people that show up speaking well of it in any post about it reeks of paid shills.
For some reason it is also not listed on CoinCap.io, although it is listed on CoinGecko and CoinMarketCap. It is also listed on fewer exchanges than other coins we've seen so far.
I couldn't find any concrete evidence of it being a scam, but I am excluding it for being a centrally-controlled token.
This is a Binance-controlled token, so it is out.
I also didn't know much about this coin, but my research didn't raise any red flags about it, so it's in.
This one is an ERC20 token, but it is managed by a smart contract and although it seems to be somewhat centrally-controlled by now it does have a governance model to make this control be diluted over time. It is also trying to solve a real problem, so it is in.
I was not too familiar with it, but after researching about it I really like the idea. I see no problem in including it.
Stellar feels to me a bit too much like Ripple 2.0, but I don't have any concrete problems with it.
This is an OKEX-controlled token, so it is out.
Another one of the old kids in town, I have no problems with it.
I have a "too buzzwordy" feeling about TRON, and I feel it is a bit too much connected to its founder, but no concrete problems as well.
This is a bitfinex-controlled token, so it is out.
USD Coin is excluded due to being a stable coin and being centrally-controlled.
This is an asset that I am not too sure I understand completely, and it is not listed from CoinCap.io and its market cap is not computed on CoinMarketCap.
From what I can gather a cToken is meant to be a token that identifies that you have deposited in Compound's loan market. The only place where it is really traded is in the Compound exchange itself, and it's value is tied to the interest accrued from the loans in the platform and to the underlying asset, which in this case is DAI, a stablecoin.
I find Compound Finance interesting and intend to read more about it, but I don't think cDAI is fit for my index, as it is not freely tradeable and tied to a stablecoin.
This is a Huobi-controlled token, so it is out.
This is one more buzzwordy smart contract platform with no concrete red flags to it.
A fork from the main Ethereum chain that rejects the rescue of stolen funds from a buggy smart contract. I am sympathetic to the idea of rejecting a centrally-proposed hardfork, and I see no red flags with this coin.
And with this we are up to my intended 15 assets. This is the composition of the index with current market capitalizations:
|Asset ||Weight |
|bitcoin ||72,29% |
|ethereum ||12,71% |
|ripple ||3,80% |
|bitcoin-cash ||1,89% |
|cardano ||1,56% |
|bitcoin-cash-sv ||1,42% |
|litecoin ||1,28% |
|eos ||1,03% |
|chainlink ||0,96% |
|tezos ||0,73% |
|stellar ||0,71% |
|monero ||0,51% |
|tron ||0,46% |
|vechain ||0,36% |
|ethereum-classic ||0,30% |
This is the portfolio I intend to target from now on, with occasional rebalances of course. I would like to hear what you think about my criteria and my application of them, and where I could improve it.
Favorites BTC Markets USD Markets USDⓈ Markets ALL. Pair. Coin While the price of Bitcoin remained around USD 1,000-2,000 until early 2017, the second half of 2017 saw Bitcoin reaching new highs with a sharp increase in late 2017 to reach an all-time high slightly below USD 20,000.After that, its price collapsed to USD 3,500 in late 2018.. Since the beginning of 2019, Bitcoin price has rebounded to price levels near USD 10,000. Encuentre la tasa de cambio actual del Bitcoin Dólar Binance y acceda a toda la información sobre el cambio BTC/USD. Binance ist eine zentralisiert-Kryptowährung, die sich in Cayman Islands befindet. Bei dieser Börse gibt es derzeit 250Kryptowährungen und 853 Handelspaare. Für Binance wurde in den letzten 24 Stunden ein Volumen von 197.425,66 ₿ gemeldet.Das aktivste Handelspaar an der Binance-Börse ist BTC/USDT. Binance wurde 2017 gegründet. Binance cryptocurrency exchange - We operate the worlds biggest bitcoin exchange and altcoin crypto exchange in the world by volume Binance exchange statistics; Trading market pairs: 749: 24h Volume: $3,860,890,684 USD. €3,250,537,919 EUR. 4,324,504,209,550 KRW. 384,056 BTC. 24h Trades: more ... Binance-coldwallet Bitcoin Wallet with balance chart. 0.504% of all coins: Received: count: 971. first: 2017-12-08 07:51:10 UTC. last: BTC USD (Bitcoin / US Dollar) This is the most popular Bitcoin pair in the world. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of Bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls this cryptocurrency and everyone can take part. Bitcoin price grew ... The Binance USD (BUSD) will launch in partnership with the Paxos Trust Company and will be backed by USD on a 1:1 ratio. Paxos customers will be able to purchase BUSD tokens through their signature wallet using either USD or PAX, a stablecoin owned by PAX. Binance customers will also be able to purchase BUSD with Bitcoin (BTC), Binance Coin (BNC) or XRP. According to Superintendent Lacewell ... Trade over 40 cryptocurrencies and enjoy the lowest trading fees in America.
Binance Hack und BNB: 20:50 ... Bitcoin Kurs 10 USD & XRP Kurs 4229 USD? Satoshi Enthüllung Plus Token Scam IOTA News - Duration: 36:53. CryptoMonday 8,545 views. 36:53 . My First Year ... Bitcoin Golden-Cross Binance Hack FUD Ripple wie Amazon? Chainlink löst DeFi Problem Tezos Rakete IOTA Sicherheits Update 🔐 Bitcoin & Crypto Wallet... Bitcoin Golden-Cross Binance Binance BNB has been one of the best altcoins of 2020 in gaining and was recently featured on my BK Crypto Trader April Price Prediction video - which resulted in a gain of nearly 30%! Now is the ... How to show your Binance Balances in USD and EUR ... How to Buy Bitcoin on Binance US & Store in a Ledger Nano X - Duration: 8:36. Rex Kneisley 1,392 views. 8:36. Stock Market Order Types (Market ... Crypto News $500 Mil Bitcoin Sold To Crash Market! Binance "Hacked", Pumps VIA Coin 10,000% - Duration: 21:23. Bull & Bear Cryptocurrency Analysis, News & Education 3,273 views However, Binance.US is allowing a new trustworthy USA resident option for turning fiat USD aka dollars into Bitcoin, Ethereum, and several other cryptocurrencies including Binance's BNB token ... binance how to buy bitcoins how to buy bitcoins with paypal how to buy bitcoins with credit card how to buy bitcoins with cash how to buy bitcoin stock how to buy bitcoins anonymously how to buy ... Binance Hack: Bitcoin im Wert von 42 Mio. USD gestohlen 💀 Block-Builders. Loading... Unsubscribe from Block-Builders? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 4.51K ... My Second Channel: https://www.youtube.com/channel/UCvXjP6h0_4CSBPVgHqfO-UA -----... Binance Altcoins https: ... Bitcoins - Was man wirklich wissen muss Harald Lesch - Duration: 8:56. Terra X Lesch & Co 721,447 views. 8:56. So traden Sie ein kleines Konto groß! - Duration: 1:13 ...