15th Mar 2021

GTi12 – One of the Fastest Growing Crypto Indices of 2020-21

Article Table of Contents:

The GTi12 Index
Why Trade the CryptoGT Index
Final Thoughts

The cryptocurrency market might have seen a meteoric run over the past year, but it still is characterised by high volatility. While this offers multiple trading opportunities for experienced traders, it is also the reason why newbies fear crypto trading. This is where indices come to the rescue. With an index, whether a stock index or a crypto index, a trader can judge the overall market sentiment and make informed trading decisions. In fact, many successful traders recommend adding indices to effectively diversify trading portfolios.

Take the well-established stock indices, for instance. The DJIA, S&P 500, NASDAQ or FTSE 100 have all proven their worth in tracking an entire market or market segment, while being lower risk than investing in individual stocks. While crypto indices are still very young, they have proved to be powerful tools to gain exposure to the cryptocurrency market for both beginners and professionals. They also help traders avoid coins with fake trading volumes.

One such robust index is the GTi12 index, launched in March 2020. Within just a year of its launch, the index has seen rapidly rising popularity and, therefore, numbers. Here’s what you should now about this new yet promising index.

The GTi12 Index

This is an unweighted price index, owned and administered by global crypto trading broker, CryptoGT. The index objectively measures the performance of 12 major cryptos traded on CryptoGT. Given the cryptos it tracks, it can be a useful way to monitor the performance of the overall crypto market. This makes it a robust tool for both retail and institutional traders.

The index consists of the top 12 most traded cryptocurrencies, including BTC, XRP, ETH, BCH, LTC, BSV, XLM, EOS, DOT, BNB, TRX and ADA. The crypto trading broker determines the eligibility of the constituent cryptos on the index once every quarter, based on multiple variables, including market cap, liquidity and whether the coin is available on the CryptoGT platform for trading. However, stable coins are not part of this index.

The index can be accessed both on the web and via mobile devices on the CryptoGT MT5 platform, via the ticker GTi12. It is available for trading 24/7!

Why Trade the CryptoGT Index

One of the key reasons that has made this index popular so quickly is its compound rate of interest. The figure is derived using the geometric mean approach, which accounts for both exponential and varying growth over a specific timeframe. In addition, all 12 cryptos on the index have an equal impact on the price, since it is an unweighted price index.

The limitation of traditional price weighted indices is that the simple arithmetic mean method is used to determine price, which can lead to growth being overstated. With the geometric mean, investors get a true reflection of market price movements. Moreover, with CryptoGT, traders get some of the best trading conditions, such as real-time pricing via multiple established liquidity providers.

Another advantage that this index offers is that the administrators re-evaluate the list of cryptos on the index at the end of each quarter, taking into account their market cap, market ranking and liquidity. This ensures that the index always lists the top 12 major cryptocurrencies in the market. Most importantly, the replacement of a constituent crypto does not impact the overall price level of the index.

Also, the GTi12 algorithm is used to calculate the bid and ask prices of each constituent cryptocurrency on the index, which then determines the index’s buy or sell value. The price of the index is rounded to four decimals.

GTi12 has seen steady growth over the first 1 year of its launch, from March 2020 to March 2021, with an increase of more than 900%.

Final Thoughts

Trading the CryptoGT index brings all the advantages offered by an established crypto trading broker, such as deposit bonus, high trading leverage, low spreads, and access to a wide range of assets, including currency pairs and CFDs, all from the single trading account. However, it is important to remember that like all other crypto indices, GTi12 is also sensitive to the volatility and fluctuating liquidity of the cryptocurrency market, since they impact the amount or quality of data available for the GTi12 algorithm.

Therefore, it is always recommended to trade with a complete understanding of all the risk factors involved and after putting in place appropriate risk management measures.

Do you think the CryptoGT index holds promise? Would you trade it? Share your thoughts with us. Contact our 24/7 Live Support by using our live chat or via email at [email protected].
This website is owned and operated by Hatio Ltd. Hatio Ltd is a registered company in Marshall Islands, with registration number 90645 and has its registered address on Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960.

Cryptocurrency trading can be extremely risky and can lead to large and immediate financial losses. Crypto assets are highly volatile and can result in significant losses of your capital over a short period of time. Cryptocurrencies markets are unregulated services which are not governed by any specific regulatory framework. The provision of such services is not being directly provided by the Company but through licensed third parties.

CryptoGT does not provide its services to residents of various jurisdictions such as but not limited to the United States of America, North Korea and Cuba.

CryptoGT currently accepts only cryptocurrencies as method of deposit.
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