Analysis of the crypto market

Cryptocurrencies have been around for a while and there are multiple papers and articles on the basics of cryptocurrency. Not only has cryptocurrency boomed, but it has opened up as a new and reliable opportunity for investors. The crypto market is still young, but mature enough to ingest enough data to analyze and predict trends. Although it is considered the most volatile market and a big gamble as an investment, it has now become predictable to a certain point, and Bitcoin futures are proof of that. Many stock market concepts have now been applied to the crypto market with some tweaks and changes. This gives us another proof that many people are adopting the cryptocurrency market every day, and currently there are more than 500 million investors present in it. Although the total market capitalization of the crypto market is $286.14 billion, which is roughly 1/65 of the stock market at the time of writing, the market potential is very high given its success despite its age and the presence of already established financial markets. The reason for this is none other than the fact that people have started to believe in the technology and products that support crypto. It also means that crypto technology has proven itself so much that companies have agreed to put their assets in the form of crypto coins or tokens. The concept of cryptocurrency became successful with the success of Bitcoin. Bitcoin, which used to be the only cryptocurrency, now contributes only 37.6% of the total cryptocurrency market. The reason for this is the emergence of new cryptocurrencies and the success of the projects that support them. This does not mean that Bitcoin has crashed, in fact, the market capitalization of Bitcoin has increased, but what it indicates is that the crypto market as a whole has expanded.

These facts are enough to prove the success of cryptocurrencies and their market. And in reality, investing in the crypto market is now considered safe, to the extent that some are investing for their retirement plan. So what we need next are crypto market analysis tools. There are many such tools that allow you to analyze this market in a similar way to the stock market that provides similar metrics. Including coin market cap, coin stalker, crypto and investing. Although these metrics are simple, they provide crucial information about the cryptocurrency under consideration. For example, a high market cap indicates a strong project, a high 24-hour volume indicates high demand, and a circulating supply indicates the total amount of coins of that cryptocurrency in circulation. Another important metric is cryptocurrency volatility. Volatility is how much the price of a crypto fluctuates. The crypto market is considered to be very volatile, a payout in one moment can make you a big profit or make you tear your hair out. So what we are looking for is a cryptocurrency that is stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered stable. In addition to durability, they must also be strong enough so that they do not become invalid or simply cease to exist on the market. These features make cryptocurrency reliable, and the most reliable cryptocurrencies are used as a form of liquidity.

As for the crypto market, volatility goes hand in hand, but so does its most important feature, decentralization. The crypto market is decentralized, which means that a drop in price in one crypto does not necessarily mean a drop in the price of any other crypto. This gives us an opportunity in the form of what are called mutual funds. It is the concept of managing a portfolio of cryptocurrencies in which you invest. The idea is to spread your investments across multiple cryptocurrencies to reduce risk if any cryptocurrency starts to fall

Similar to this concept is the concept of indices in the crypto market. Indices represent a standard reference point for the market as a whole. The idea is to choose the best currencies on the market and spread the investment among them. These selected cryptocurrencies change if the index is dynamic in nature and only takes into account the best currencies. For example, if currency ‘X’ falls to the 11th position in the crypto market, the index that considers the top 10 currencies will now not consider currency ‘X’, but will start considering currency ‘Y’ which has taken its place. Some providers such as cci30 and crypto20 have tokenized these crypto indexes. While this might seem like a good idea to some, others are against it due to the fact that there are some prerequisites for investing in these tokens, such as a minimum investment amount required. While others, such as cryptoz, provide the methodology and value of the index, along with the currency components, so that the investor is free to invest the amount he wants and choose not to invest in the cryptocurrency that is otherwise included in the index. Therefore, indices give you the choice to further mitigate volatility and reduce the risk involved.


The crypto market might seem risky at first glance and many might still be skeptical of its authenticity, but the maturity this market has achieved in a short period of its existence is incredible and proof enough for its authenticity. The biggest concern of investors is volatility, for which there was a solution in the form of an index.