Connect with us

Expert Take

How does Cryptocompare work? Complete insights

Published

on

How does cryptocompare work

Understanding the actual math behind the price indexing by Cryptocompare

 

Introduction to indexing

Cryptocurrency index is the most engaging tool one can apply in order to get a brief idea about the current state of affairs. There are almost more than thousands of cryptocurrencies which have been developed, with Bitcoin being the most dominating one. All these circumstances only lead to a conclusion that both the private and institutional investors are going to, no sooner depart from cryptocurrencies.   

 

Importance of indexing

Regardless of the type of investors, they are finding it challenging to choose the right cryptocurrency portfolio in order to optimize their returns on investment. The best strategy one can apply is cryptocurrency indexing. Technically, indexing is the process of optimizing the disk space utilization whenever a query is processed. However, according to financial terms, indexing is the best strategy a private investor can apply in order to gain stabilized return of investment on a long-term basis.

It is nothing but an allocation of the financial assets that the private investor is looking forward to investing in, in his portfolio, in a systematic manner so as to stabilize everything. The movement in the cryptocurrency market, like any other traditional market, completely depends on the mindset, values, beliefs, and goals of billions of people around the world on the market and hence evaluating each and everyone’s goal and aggregating them to predict the market conditions by an individual is almost impossible.

 

CryptoCompare

There are a number of traditional stock market index providers which use professional methods in order to give their users, a concise condition of the market, like German DAX, the Dow Jones, the British FTSE 100, etc. On the other hand, in cryptocurrency space there are only a handful of cryptocurrency index providers and the most preferred one is CryptoCompare.

It is one of the most interactive discussion platforms which is even specialized in providing the users with real-time information in the current market streams. Cryptocompare was founded by two cryptocurrency enthusiast namely Charlie Hayter and Vlad Cealicu, both the visionaries left their full-time job in November 2014 when they received fundings for the project.

An effective cryptocurrency index is provided by cryptocompare for most popular cryptocurrency coins like Bitcoin, Bitcoin cash, Ethereum, Ripple, Litecoin etc. As each investor has his own goals towards them, and developing a cryptocurrency index might not please all the investors. Daily trading volume is the key concept they consider before averaging the price of a cryptocurrency from an exchange. The cryptocurrency exchanges which the company uses must have a sizeable daily trading volume. Apart from considering the objective metrics, subjective metrics are also taken into account as to how reliable and trustworthy the cryptocurrency exchange is.

If a particular cryptocurrency exchange doesn’t seem to be reliable and worth enough to be included, is not included, to calculate the aggregate price of a designated cryptocurrency coin. But the trading volume from all the cryptocurrency exchanges is considered regardless of its size of the trading volume.

 

Calculating the price index

Volume Weighted Average Price (VWAP) is the paradigm that the indexer for CryptoCompare uses. The past 24-hour trading volume is considered by the indexer. For example, considering two exchanges X and Y, if an exchange X has 60% of the trading volume in the past 24 hours then the aggregate index is calculated as follows.  

Index = (last trade on X)*0.6 + (last trade on Y)*0.4

 

Calculating the percentage of trading volume

In order to calculate the percentage of trading volume for a cryptocurrency exchange among the total. The crypto exchanges which were used for price calculation are only considered even here. For practical reasons, when a particular cryptocurrency exchange goes offline which means that no trade happens for a particular duration of time, then lesser priority is given to such exchanges depending upon their ideal time. Hence cryptocurrency exchanges with high ideal time are given lesser preference automatically.

 

reduction =(Over 5 Min:0.8 ,Over 10 Min:0.6, Over 15 Min:0.4, Over 20 Min:0.2, Over 25 Min:0.0)

 

For illustration, if an exchange has been ideal from 15 to 20 minutes then only 40% of its trading volume is considered. This effectively rules out the price uncertainties.

Professionals at cryptocompare even make use of Open High Low Close (OHLC) charts in order to assess the precise market price. The preeminent and also the most undervalued cryptocurrency is taken into account.  

 

Conclusion

Although the cryptocurrency index providers provide real-time data there are some bottlenecks. The real world cost of slippage, impracticality for the investors to adjust their portfolios according to the changing market, also the intermediate commissions, taxes, along with the transaction fees are exempted.

Continue Reading
2 Comments

2 Comments

  1. Pingback: How does Cryptocompare work? Complete insights – Btc News Magazine

  2. Pingback: How does Cryptocompare work? Complete insights – The Coinage Times

Leave a Reply

Your email address will not be published. Required fields are marked *

#Blockonix

What is BDT token? Why Is it a good investment for 2018?

Published

on

BDT token is the native token for decentralized crypto exchange, Blockonix. The holders will undoubtedly experience an increase in the value of BDT tokens.

Comprehending some of the key attributes of the BDT token.

Introduction

Following the footsteps of Satoshi Nakamoto, a decentralized exchange is the complete form of freedom in the Crypto domain that can be provided to the customers. However, there are downsides to a decentralized exchange, as they are not capable of handling the number of volumes a centralized exchange currently handles. In a decentralized environment, there is absolutely no place for block rewards, which is responsible for incentivization to the economy in the system. But the decentralized exchanges are absolutely global, unlike the Centralised ones which are restricted to some countries only. Blockonix is one of such decentralized exchanges which is proving to be the future of decentralized crypto trading and BDT Token is the core token of the Exchange. Although the decentralized exchanges do not support the Fiat currencies, it is yet the preferred place for all the crypto fanatics.

Blockonix

Blockonix launched on 20th July 2018 is one of the most reliable and trustworthy decentralized Crypto exchange. It launched its operations from Malta despite originally being from India due to the regulatory bottlenecks in the country. The Crypto exchange earlier was called by the name ‘BitIndia’ which was a domestic Crypto exchange, to be launched in India itself. But due to strict Crypto regulations in the country, the organization was forced to go global by rebranding itself to Blockonix.

As the complete operations of the Crypto exchange are solely vested with a number of smart contracts, there is no single authority who is in control of the funds on the exchange, as they staunchly believe in the decentralized principal. The most reliable, Ethereum environment, was incorporated to build the whole smart contract based Crypto exchange, where the users are fully in control of their funds.

 

BDT Token

BDT token is the native token for decentralized crypto exchange, Blockonix. The Crypto exchange as earlier was expected to launch as  BitIndia but was unable to do so, hence is providing a provision to all the BitIndia users to swap their tokens with BDT tokens. With approximately 2000 holders, the total supply of token is just  10,092,083.35. BDT tokens are to be listed on some of the major cryptocurrency exchanges along with being listed on it’s on home Crypto exchange.

The holders will undoubtedly experience an increase in the value of BDT tokens as all the trading fees which are to be obtained, while trading, would be permanently destroyed by sending them to a burn address. In this way as the scarcity of the token increases, the value also increases. The team members of the project are highly committed to providing a world-class facility to their traders.

The trading fees are 0.1 % and a flat 70% discount would be made avail if the users incorporate BDT tokens for the paying the fee. Generally, Ether along with the Ethereum gas is incorporated for the transaction fees. The complex decentralized environment is economically sound, as there is negligible expenditure on security measures, as the decentralization is incorporated into its core framework itself. Thereby cutting down the security costs.

Good investment?

The Bloconix decentralized Crypto exchange has listed more than 100 Ethereum tokens for trading. With sufficient security and robustness provided by the team members, the value of the tokens is bound to increase as the crypto exchange expands. Hence it is one of the best tokens that one must be opting for incorporating into their investment portfolio for 2018. The Crypto exchange is predicted to set benchmarks in the history of decentralized Crypto exchanges, in turn, pushing the value of the BDT tokens towards the sky.  

 

Conclusion

The fact can be denied that the Centralized exchanges have played a major role in providing liquidity along with shaping the cryptocurrency market worldwide. But there is a lot of downside to it, a sum of the Crypto exchanges offers their service to selected regions. On contrary, Blockonix, is open for its usage, except for the citizens of the countries of United States of America, Singapore, and China.

Continue Reading

#Tron Price Analysis

What is TRON? Is TRON a good investment for 2018?

Published

on

Tron is one such cryptocurrency which aims to create a decentralized entertainment content sharing system and seems to have an amazing future.

Understanding the fundamental principles of the TRON project.

Introduction

The Blockchain’s Distributed Ledger Technology is one of the most secure forms of storing the information but as it is shared among each and every node of the network, privacy is somewhere being compromised, although transparency is maintained. However, apart from the currency point of view, there are a number of other applications in the real world where problems are yet to find solutions.

Any venture is undertaken, which was disliked by the government, was forced to shut down its operations through the centralized governing authority of the Government, but the decentralized concept of the cryptocurrencies has open the new oceans of opportunities, which is in some of the other ways, free from government censorship. Decentralization is a powerful tool which is absolutely independent of government control. Many cryptocurrency coins are used among the network for the transfer of value within it, along with the main intention behind the project being uncontrollable by the government.

TRON

Tron is one such cryptocurrency which aims to create a decentralized entertainment content sharing system along with being the future of decentralized social media. The users of the network need to constantly share their content with the other members of the network for which, based on a number of factors, the cryptocurrency will be rewarded in the form of an appreciation.

It’s truly a perfect cryptocurrency destination for all the social media, gambling and entertainment Geeks. Let’s try to gain some insights about the project.

 

  • Currently, as the whole internet revolves around some of the big companies like Google, Amazon, Facebook, Instagram, etc they have complete authority over us, about our identity. Their applications are also designed in an addictive fashion so as to extract the maximum activity through them from us. It is estimated that Google, one of the most powerful search engine, knows about your preferences more than anyone else. Hence sharing your personal ideas and beliefs which such centralized organizations don’t seem to be reliable. Thereby a decentralized system is required, when no one can keep an eye on our personality.

 

  • In the centralized form of an entertainment system, it is worth noting down that they have the complete authority of taking down any particular information or manipulate them according to their requirements. In a decentralized system, there is no concept of censorship and higher transparency is also obtained.

 

  • The users would be paid by the network directly for their contribution for the content to the network without the intervention of any third party in the form of the native cryptocurrency.

 

  • The cryptocurrency organization strictly complies by all the rules and regulations of the governing authority.

 

  • Justin Sun is the founder of the TRON project. He has been able to achieve this fiat, at an early age of 27. He is also well known to have been founded the Peiwo app, which can be considered similar to Snapchat in the audio version, where users record that 10 seconds audio clipping and others listen to it. This app even became the first one to collaborate with TRON.

 

  • Jack Ma, the founder of Alibaba Group, is estimated to be very near and dear to Justin Sun. He was exclusively selected by Jack ma to study at the Jack ma Hupun University. Some of the key developers from the Alibaba group are migrating to the TRON Foundation.

 

  • In other words, Jack Ma can be considered as a mentor for Justin Sun. While Jack ma, himself is backed by prominent figures like Feng Li and Tim berners-lee.

 

  • A top class security is provided by the TRON network as it is supervised by Jorge Guo, a well-known entity who has been endorsed to maintain Security at massive organizations like Google, Huawei, Qualcomm, etc. But in order to be on a safer side one is suggested to hold their cryptocurrency coins in their personal wallet itself.

 

Is it good an investment option?

With collaborations with key figures like Jack ma and most skilled developers from all around the world on the project, TRON seems to have an amazing future, as it is still in its natal stage. But speculations are haunting the project as Justin Sun is considered to be too young to handle a project at such scale. The fundamental concept seems to be promising enough for the project’s development in future and hence can be opted as a viable investment option.  

Continue Reading

#Exchange

What is NEO? Is it a good investment? How is it different from Ethereum?

Published

on

NEO can be considered as the Chinese version of Ethereum, It has a lot of similarities with Ethereum but not exactly the same as Ethereum. NEO vs Ethereum.

Attributes which render NEO, to become a potential competitor to Ethereum.

Introduction

Ethereum is one of the most famous cryptocurrency after Bitcoin. Ranking second, according to Coinmarketcap, the crypto protocol provides a standard template in order to facilitate anyone to create decentralized applications in their own customized manner. In those decentralized applications, the virtual commodities which are traded are confirmed on the Ethereum network. Scalability has always been an issue with respect to the Ethereum network due to an adamant usage of these decentralized applications. Crypto kitties were the most trending decentralized app, which had even once caused a clog in the Ethereum network. Let us see both while comparing Neo vs Ethereum.

 

NEO

NEO can be considered as the Chinese version of Ethereum. It is evident, in this world, that the people of China can be considered a bit arrogant in nature or patriotic towards their country, as they restrict themselves from using the Western products and services. They are known to have their own version of Facebook, WhatsApp, Amazon, also one of the most famous cryptocurrency platform, Ethereum which they use extensively. The cryptocurrency network is nothing but a distributed network for the improvement of the smart economy.

Further insights into NEO

NEO protocol basically comprises two kinds of coins, one is the native coin, NEO and the other one being, NeoGas. The concept here is very similar to that of Ethereum. NEO is used for all the transactions which take place under the NEO Network, and the NeoGas is used to used as a fuel for the transactions. All the native tokens were pre-mined and hence no mining process is available but this is not the case for NeoGas, as it is used to reward the nodes of the network to incentivize them, to help in maintenance and verification of the blocks.

 

The practical use case seems to be very simple. If two users need to undergo an agreement and have a transaction, then they can opt for the NEO smart contract where their assets are first converted into the digital cryptocurrency Neo. Followed by which, according to the rules and regulations, predefined on a smart contract the transaction is undertaken.

NEO vs Ethereum

The cryptocurrency has a lot of similarities with Ethereum. Although it is not exactly the same as Ethereum. Let us see Neo vs Ethereum Analysis.

In the Ethereum Network, an exclusive programming language is incorporated in order to develop the smart contracts, but in case of NEO, smart contracts can effectively be developed by using some of the already existing and popular programming languages like as C# and Java. Also in Neo vs Ethereum, Further developments are being done with respect to the NEO Blockchain, where the creation of smart contracts is to be made available in Python as well as Go too. This feature can be acclaimed as a reason for an advantage of NEO over Ethereum.

Another key difference in Neo vs Ethereum is that can be marked between the two prominent Blockchain’s is that NEO envisages Digital Identity concept whereas Ethereum doesn’t. This feature is highly appreciated in the international market as one needs to trust the other person and somewhat transparency is obtained through this paradigm.

Is NEO worth investing in?

As the token’s total supply is fixed at 100 million, the value of the coin, over time, is bound to experience a bullish trend. The process of the release of the cryptocurrency coin is vested with a Smart Contract, where only 15 million coins are released every year. Half of the total supply was already released earlier itself. This consistent release of coins is what offers stability to it. The platform even provides high scalability and controls the latency with 10,000 transactions per second. Being developed in China the cryptocurrency coin is somehow restricted, for its unconditional adoption by the Asian countries, as China is not a Crypto friendly nation. This could mark a potential risk to the coin.

 

Conclusion

Although NEO is regarded as the ‘Ethereum of the East,’ restrictions on the cryptocurrencies in the Asian countries can resist the growth of the network. Otherwise, it possesses the potential to leave Ethereum behind. As the cryptocurrency market is highly volatile an extensive background homework is mandatory, before an understanding any investment in the crypto field. One must bet only the amount of funds, that he/she is OK to lose.

Continue Reading
Advertisement BitcoinAdvertising.com

Live Crypto Prices

  • BTC
  • USD
  • AUD
  • CAD
  • EUR
  • BTC
    Bitcoin(BTC) 7375.58
  • ETH
    Ethereum(ETH) 463.933
  • BCH
    Bitcoin Cash(BCH) 786.733
  • EOS
    EOS(EOS) 8.05681
  • LTC
    Litecoin(LTC) 84.9449
  • ADA
    Cardano(ADA) 0.166005
  • TRX
    TRON(TRX) 0.0357625
  • DASH
    Dash(DASH) 245.683
  • XEM
    NEM(XEM) 0.171055

Trending