All You Need to Know About IC15 – India’s First Crypto Index

India’s first Crypto index, IC 15, is finally here. Cryptocurrency enthusiasts, who had till recently been scampering across global crypto indexes, can now explore this Indian variant of crypto index. CryptoWire, the global crypto app which launched IC 15 recently to give easy crypto access to more than 100 million crypto owners across India. 

Here’s everything you need to know about IC 15 and cryptocurrencies in general.

What are cryptocurrencies?

Cryptocurrencies are digital assets which act as new-age investment options and can also be used as money for making online purchases. Some of the key features of cryptocurrencies include:

• These digital currencies are secured by cryptography to avoid any instances of counterfeit or double-spending.

• Cryptocurrencies do not exist physically, unlike the currencies of any country. 
• Also, these are not governed by any central authority that will regulate the value. 
• The prices of cryptocurrencies are mostly determined by users across the globe.
• Each cryptocurrency coin is made up of a unique line of program or code. This allows it to be easily trackable since it cannot be copied.

How do cryptocurrencies work?

Investors must note that cryptocurrencies are not governed by any central authority, like a country’s government/ SEBI, RBI, etc. These are generated by a chain of computers and can be exchanged between online investors without the involvement of any middlemen.

No central authority has information on cryptocurrencies regarding: 

1. how they’re generated, 
2. how their value is determined or
3. how they are exchanged. 

Since crypto transactions are secured by cryptography, only the buyer and sender can view its contents.

What is IC15?  

IC15 is India’s first global cryptocurrency index. This rule-based broad market index aims to track the performance of most traded and highly liquid cryptocurrencies across the globe. The index is projected to help crypto enthusiasts and investors in the country to closely monitor their cryptocurrency investment performance from a global markets perspective. Here are its top features:

• IC15 will closely track the performance of top 15 cryptocurrencies that are most popular in terms of trading volume 
• It will track top cryptocurrencies listed on leading crypto exchanges measured by market capitalization
• Here is the list of cryptocurrencies it aims to track:
  • Bitcoin, 
  • Ethereum, 
  • Dogecoin 
  • Ripple, 
  • Solana, 
  • Binance coin, 
  • Avalanche, 
  • Cardano, 
  • Terra, 
  • Polkadot, 
  • Shiba Inu, 
  • Litecoin, 
  • Bitcoin Cash,
  • Uniswap, 
  • Chainlink

How does IC15 index work?

The IC15 index works by calculating the weighted average of the market capitalization of the 15 selected cryptocurrencies and dividing it by a divisor that is adjusted periodically to account for changes in the index composition. The index value is then expressed in US dollars and updated every 15 minutes. The index reflects the performance of the crypto market as a whole and can be used as a benchmark for comparing different crypto assets or products. 

How do cryptocurrency investors benefit from IC15?  

Here are some of the main benefits that are expected from IC15 are:

1. One of the main benefits to be availed from establishment of IC15 is easy solutions to ensure a diversified portfolio that can further help in containing overall risks.
2. The IC15 Index is expected to be transparent and efficient. Experts believe that the index is established on a simple and easy to follow model. This will even help new investors make the most of the cryptocurrency rush.
3. It will likely help lower the investment costs 
4. Investors can have a fair idea of prices with the ever changing and fast-moving digital cryptocurrency world.
5. With India’s own crypto index, the crypto market in the country is expected to mature, thereby allowing access to more investors. 
6. IC15 can also help further the overall crypto-related knowledge that exists within the crypto and blockchain ecosystem. 

Important factors surrounding IC15 – India’s first crypto index

Here are some of the key aspects that investors should know about the IC15 index:

1. IC15 has been set up by CryptoWire which is a Mumbai-headquartered unit of crypto statistics expert TickerPlant. By setting up an index, the company aims to enable crypto investors to closely monitor the performance of their investments in global cryptocurrencies.

2. The index functioning will be closely monitored by a governance committee that will comprise industry experts, seasoned practitioners, and academicians. This team will be responsible for administering and rebalancing the index once every quarter.

3. The IC15 index is set-up to provide insights into crypto mining. With the help of this information, cryptocurrency investors can make more informed decisions to contain risks.

4. The criteria for a crypto coin to be listed on IC15 are:
   1. Within a certain review period, the cryptocurrency should have been traded on a minimum of 90% of the trading days. 
   2. The cryptocurrency’s market capitalisation must have been in the top 50 during this period. 

Conclusion

Since there are many other cryptocurrency indices existing globally, IC 15 already sees a global competition, since seasoned investors may rely on well-established indices. However, since IC 15 is the first Indian cryptocurrency index, it is sure to push the market towards better experience, knowledge, and expansion.

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