{"id":10272,"date":"2022-04-23T00:04:34","date_gmt":"2022-04-23T00:04:34","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/altcoin-roundup-crypto-indexes-offer-broad-access-but-are-they-profitable-in-the-long-run\/"},"modified":"2022-04-23T00:04:36","modified_gmt":"2022-04-23T00:04:36","slug":"altcoin-roundup-crypto-indexes-offer-broad-access-but-are-they-profitable-in-the-long-run","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/altcoin-roundup-crypto-indexes-offer-broad-access-but-are-they-profitable-in-the-long-run\/","title":{"rendered":"Altcoin Roundup: Crypto indexes offer broad access, but are they profitable in the long run?"},"content":{"rendered":"
The cryptocurrency market is known for its high volatility and the wild-west nature of the space is, in part, due to many of the assets having small market caps and the 24\/7 operational hours of centralized and decentralized exchanges (DEXs).<\/p>\n
In addition to being high risk, crypto trading can also be a very time-intensive process. It can be an overwhelming task and a barrier to entry for most investors in determining which tokens to invest in. <\/p>\n
For these investors, index investing could be a profitable alternative for gaining exposure to some of the hottest sectors of the cryptocurrency market.<\/p>\n
Here\u2019s a look at how crypto index products compare to individual tokens and which strategies have produced the biggest return. <\/p>\n
Index Cooperative (INDEX) is a decentralized autonomous asset manager that allows investors to create a custom index of tokens using smart contracts. <\/p>\n
Several of the most actively traded indexes originated from Index Coop, including the DeFi Pulse Index (DPI), Metaverse Index (MVI), Data Economy Index (DATA) and Bankless DeFi Innovation Index (GMI). <\/p>\n
Plotting the price of these indexes against the total market capitalization of the cryptocurrency market can help provide insight into how each one performed compared to the market as a whole. <\/p>\n