What is IC15, India’s first cryptocurrency index

Most of us are familiar with stock market indexes such as the BSE Sensex and the S&P 500, which are market performance indicators. Crypto, a relatively nascent investment vehicle, operates without the involvement of a trusted third party (such as central banks). And blockchain is the underlying technology that makes it possible. Like stock markets, cryptocurrencies also have indexes, such as IC15, that enable investors to monitor the price of different cryptos. Let us understand more about this crypto index and the crypto ecosystem in general.

What are cryptocurrencies?

Cryptocurrency is a form of digital or electronic money that is encrypted and almost impossible to copy or counterfeit. Blockchain technology is the foundation of several crypto-based decentralized networks. Blockchain is a distributed database controlled by a vast computer network.

Cryptocurrencies enable safe online transactions without intermediaries. These entries are protected using various cryptographic techniques, such as hashing, data encryption pairs, and curve encryption. You can mine crypto, purchase them from exchanges, or pay with them when engaging in blockchain activities.

How do cryptocurrencies work?

Crypto is transferred from one person to another without the involvement of third parties like banks. The high-level encryption technology in these networks ensures that specific parties can buy, sell, or transfer digital currency. But first, let us understand how the whole ecosystem works, starting with mining.

• Mining: Cryptocurrency mining is essentially about updating the digital ledger—the blockchain—to record a transaction. Crypto miners lend their computing power to validate blocks of transactional data and update the ledger, which is accessible to all users. They are thus vital to the process. By contributing their computing power, miners prevent double spending and secure the network against unverified manipulation. Miners get newly minted coins as rewards for the work done.
• Purchase, sale, and storage of cryptos: Users may now buy or sell crypto from traders, exchanges, and independent holders. Trades and online markets are the most suitable venues to buy or sell crypto. After being purchased, crypto may be stored in digital wallets. Digital wallets come in hot and cold variants. A hot digital wallet supports online transactions but is susceptible to theft and loss. On the other hand, cold storage is safe but makes transactions more challenging.
• Transferring or investing: With just a smartphone, crypto like Bitcoin may be easily transferred between digital wallets. After acquiring them, you could sell them for cash or utilize them to purchase goods and services. Also, you may swap crypto for cash utilizing peer-to-peer exchanges.

What is IC15?

A cryptocurrency index is an excellent way to track different crypto before investing.

Cryptocurrency application CryptoWire launched IC15, India’s first cryptocurrency index in 2022, in collaboration with crypto exchange Bitbns. The index tracks the top 15 liquid cryptos with the highest volume of trading. It is a principal broad market index based on market capitalization and records the biggest crypto exchanges worldwide.

The program will keep track of digital assets such as Bitcoin, Binance Coin, Ethereum, Cardano, Solana, Ripple, Dogecoin, and Shiba Inu. IC15 covers more than 80% of all crypto assets.

How do crypto investors benefit from IC15?

As the crypto sector matures, stakeholders will benefit from the IC15 index’s robust institutional utility through ETF and alternative asset management products. The index gives India its place in the global crypto market.

Since IC15 index prices will be visible everywhere, it will be possible for a business to keep track of changes in the crypto market. The index also displays how major global news events and governmental decisions affect market prices.

Important factors surrounding IC15, India’s first crypto index

The IC15 index satisfies the trading community’s long-felt need for trading in an index, which enables evident trading on underpinning prices without the difficulties of taking delivery in specific cryptos.

Investors would do well to take note of certain characteristics of the IC15 index:

• CryptoWire, a division of TickerPlant, a leader in crypto statistics with its headquarters in Mumbai, launched IC15. The startup hopes to give crypto investors the ability to closely track the success of their involvement in various global cryptocurrencies by creating an index.
• A governing group of professionals from the sector, seasoned practitioners, and academics will regularly monitor how the index operates. This group will be in charge of managing and adjusting the indices once every three months.
  The IC15 index offers education on crypto mining. Crypto investors may reduce risks by making better judgments using this information.
• Crypto must meet the following requirements for inclusion on the IC15 index:
  • The coin must have been traded on at least 90% of the trading days during the evaluation period.
  • During this time, the crypto’s market capitalization must be in the top 50.

Conclusion

Investing in crypto is becoming increasingly popular. However, novice investors would need some handholding to navigate the global crypto market. Monitoring indexes such as IC15 will provide some insights into how the market functions.

Start with popular crypto like Bitcoin. Given the risks involved, acquiring or selling crypto through approved platforms is crucial. You may make money with crypto in various ways, including purchasing, selling, and mining.

Due to the significant volatility of crypto, you should begin modestly and diversify your crypto holdings to reduce risks. Also, it would be better to follow the advice of experts initially till you develop knowledge.

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