HallyuHype
Thu Jul 11 2024
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5 answers
1031
How do altcoin indices work?
Could you elaborate on the workings of altcoin indices? I'm curious to understand how they function in the broader cryptocurrency ecosystem. Do they simply track the performance of alternative cryptocurrencies, or do they employ more sophisticated methodologies? Are they weighted in any particular way, and if so, what factors determine the weighting? Additionally, how are these indices typically utilized by investors and traders, and what insights do they provide that might not be easily discernible from individual coin prices? I'm particularly interested in how altcoin indices might help with portfolio diversification and risk management.
