What is the Index management?

CryptoIndex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 2000 coins applying over 200 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.

Index composition

First, the rating is put through a set of filters that are applied regardless of how high the coin’s rating is. The set of filters is the following:

• The coin has a trade history of at least 3 months.
• The coin is listed on at least one of the exchanges that we collect data from.
• The coin is among the top 500 cryptocurrencies by market capitalization.
• The coin is not included in any other type of index, it is not fiat-based (such as USDT), and it is not based on any kind of commodity or other assets.
• The coin is not involved in any scams or scandals, delisting or lawsuit.
• In the event a coin fails to meet any of our required criteria at any given time, it will be excluded from the index and is synthetically sold. The next best coin recommended by the AI at that moment is synthetically purchased instead of the excluded coin.

The filters allow us to make sure that no coin that does not have proven stability, quality, popularity, or potential, will have the opportunity to be included in the index.

The second process is calculating the capitalization-weighted index of the top 100 coins in the rating that have undergone the filters. This “global crypto market index” aims to expose cryptocurrency users to all the types of projects on the market (such as computing, storage, interoperability between blockchains, multi-currency wallets, gaming, marketplaces, etc.) and to minimize risk exposure.

The third process takes place after the cap weighted index has been formed. The output ratings apply to the weights and indicate which coins’ weights should shift and receive more weight or less weight. The number of coins in the index is equal to 100 at all times.

The index is calculated every second in real time, published with a lag equal to one second.

The AI-based CryptoIndex algorithm is constantly learning by consuming huge amounts of data rapidly making decisions and choices that humans would struggle to match.

You can always check the current CIX100 composition on our MVP platform:http://cryptoindex.ai/

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