What if you could buy and trade up to 10 cryptocurrencies all at once? This is what the Crypto 10 Index promises cryptocurrency trading enthusiasts. Also known as the B10 index, the crypto 10 Index makes it possible for you to buy and trade all the top 10 cryptocurrencies in the market and benefit from their price action without necessarily opening an individual position for each asset.
Crypto indexes trading is quickly gaining popularity as an alternative form of crypto investing because of its ease of access and the minimum trade requirements. It is especially favored by the more risk-averse crypto traders as it lets them spread risks to multiple digital currencies and not risk it all with just one cryptocurrency.
The fact that you are here tells us that you are looking to buy or trade the Crypto 10 Index, but you probably need guidance or are seeking more information on the crypto derivative. We have thus come up with this Crypto 10 Index investment guide to help you get started with the derivative.
Capital At Risk
72% of retail cfd accounts lose money
70% of retail cfd accounts lose money
Start by creating a user account with an online crypto trading platform that lists the Crypto 10 Index. Today there are numerous platforms facilitating the purchase and trade of the B10 Index and they all have rather straightforward account creation processes. They only need your personal information, though most will also require that you verify your identity since you are dealing with fiat deposits.
After the trader account is approved, you now need to deposit funds therein so that you can start buying the Crypto 10 Index. Most of the trading platforms that list the B10 Index also support a wide range of internationally accepted payment methods. Some of the most common include debit/credit cards, PayPal, eWallets (Skrill,Neteller), and bank wire transfer – but we will be looking at the deposit/withdrawal methods supported by each platform later.
Once the deposit reflects in your trading account, proceed to buy the Crypto 10 Index. Most companies have made this process as straightforward as possible and it involves just a few steps. Later in the guide, we will provide you with this step-by-step guide on how to purchase the index on what we consider to be the best crypto trading platforms.
The crypto 10 Index is a dedicated fund that tracks the performance of a basket of 10 cryptocurrencies. It is measured against the USD and its performance is specially designed to reflect the median value of these cryptocurrencies in real-time.
The Index was created and is actively managed by the German Financial Technology Company, BITA, and it comprises of the 10 largest digital currencies based on market capitalization. It was originally designed to serve as a benchmark for the crypto industry that crypto investors and traders could use to monitor the volatility and overall crypto market sentiment. First introduced to the market in September 2018, the Crypto 10 Index was quickly turned into an investment product and listed with numerous crypto derivatives trading platforms.
We referred to the Crypto 10 Index as a dedicated crypto fund because it only contains digital currencies. We might also add that as is the case with most other crypto and convention investment indexes, there are no permanent constituents of the Crypto 10 Index. Rather, it is composed of 10 cryptocurrencies with the highest market capitalization and trading volumes at any given moment.
Given the volatile price action of these coins, the Crypto 10 Index makeup is regularly updated to reflect the prevailing crypto market condition. As of September 2021, the ten coins making up the Crypto 10 Index basket are Ethereum, Bitcoin, Ripple, Binance Coin, Dogecoin, Cardano, Polkadot, Uniswap, Chainlink, Litecoin, and Bitcoin Cash.
In addition to the large market cap and trade volumes, BITA also considers three key features when deciding on the coins to add to the crypto 10 Index. First, the coin must prove market acceptance by virtue of being listed in two or more reputable exchanges. Secondly, the coin must have been around the crypto market and traded for at least 3 months. Lastly, the coin must at one time have been among top 200 cryptocurrencies by market cap.
Given the overbearing value and daily trading volume that cryptocurrencies like Bitcoin or Ethereum have over the rest of the market, BITA came up with a unique algorithm for weighing and balancing the composition of this index. It distributes the index weight among the different coins while capping the maximum influence that a coin may have over the index at 26%.
Here is the index weight of the 10 coins making up the crypto fund at the moment; Ethereum (26.57%), Bitcoin (23.88%), Binance (13.88%), Cardano (13.0%), Dogecoin (7.11%), Polkadot (4.93%), Uniswap (3.05%), Litecoin (2.61%), Chainlink (2.59%), Bitcoin Cash (2.46%).
Before looking at the differences between buying actual cryptocurrencies and trading the Crypto 10 Index, we first need to define cryptocurrencies and crypto derivatives. Cryptocurrencies are actual digital assets generated through mining or issued at an ICO by blockchain network developers.
Crypto derivatives, on the other hand, are financial instruments that derive their value from the performance of the actual asset. The Crypto 10 Index can thus be an aid to a crypto a derivative that derives its value from the performance of the 10 largest cryptocurrencies.
Other key differences between Crypto 10 Index and actual cryptocurrencies include:
Cryptocurrencies like Bitcoin are actual digital assets that are designed and created by crypto developers issued through ICOs or crypto mining. Crypto 10 Index, on the other hand, is a financial contract created by BITA to trail the price action of Bitcoin and nine other cryptocurrencies.
Cryptocurrencies like Bitcoin serve as a medium of exchange and store of value or simply as a native token for facilitating transactions on their respective blockchain networks. The Crypto 10 Index is especially to create to serve as a speculative investment product and benchmark for helping actual cryptocurrency buyers/traders monitor volatility and sentiment in the crypto market.
The price-performance of all the cryptocurrencies tracked by the Crypto 10 Index is majorly determined by the forces of demand and supply in the open crypto market. The index, on the other hand, has no reserve value as its price performance, therefore, mirrors the action of the actual cryptocurrencies.
The 10 cryptocurrencies tracked by the BI0 index, are available globally and can be accessed via the crypto exchanges and peer-to-peer crypto trading platforms. The Crypto 10 Index, on the other hand, is a derivative that is traded on a handful of crypto brokerages.
We have already mentioned that Bitcoins and cryptocurrencies, in general, are created through mining and sold via ICOs or exchanges. We would like to add that once a crypto coin is sold, its developers lose control over it and the crypto investor acquires its private keys, which give them absolute ownership and use rights over it.
In the case of crypto 10 Index trading, you only get a contract stating that you have entered into a buy/sell agreement with a broker. You don’t acquire ownership rights over the index. In fact, its creator retains the right to adjust its composition without consulting you.
The Crypto 10 Index is currently trading around $19,850, having lost close to 20% of its value in the last 24 hours. It however has performed exemplarily well in the past, maintaining an overall upt rending price direction.
When it first launched in September 2018, the index fund was trading below $3000. Over the years, especially as the price of the different cryptocurrencies increased, this value increased tremendously, shooting well above $25,000 at the height of the crypto market rally earlier in the year.
Moving forward, cryptocurrency prices are expected to continue rising, especially as the adoption of cryptocurrencies by both governments and the corporate world gathers pace. Considering that the Index fund price is the median price of the constituent token prices, we then can only expect its value to rise further up within the next few years.
The Crypto 10 Index mirrors the value of its constituent cryptocurrencies. Its volatility and price performance, therefore, mirrors that of the cryptocurrencies it tracks. Here are the other factors that play the biggest role in influencing the price of Crypto 10 Index.
After understanding what the Crypto 10 Index really is, its composition, and past price performance, it now is time to make the buy decision. Before you do, however, you need to first understand the different ways in which you can invest in the Crypto 10 Index, and we discuss the three most popular B10 index investment strategies here.
Hedging involves buying one asset with the intent of offsetting any losses from an investment from a related asset. A number of Crypto 10 Index traders have therefore taken up position with the derivative as a hedge and a means of shielding their portfolio from possible losses from investments in individual crypto assets.
You could also choose to day trade the Crypto 10 Index. This is a form of short-term investment that involves actively trading the index fund and taking advantage of its price volatility. In most cases, day traders will open multiple trades – both long and short – throughout the day.
These remain open for just a few seconds or minutes and all trades are closed at the end of the trading session, ensuring that no Crypto 10 Index trade remains open overnight, hence the term day trading. To succeed in day trading however you need a rich trading experience, significant trading capital, and access to the most advanced trading and analytical tools.
Swing trading involves buying the Crypto10 Index at relatively low prices, riding its uptrend, selling when it peaks, and repeating the process. For instance, if you suspect that BIT10 prices are about to start dropping, you short sell the B10index, sell when bottoms, and quickly buy as the trend swings to assume an uptrend.
It works more like day trading with the only difference being that Swing traders can hold on to a position overnight or for a few days, as long as the trend holds. As is the cases with day trading, you need a lot of experience to help you monitor and accurately interpret market performance.
After looking at the different investment strategies available to Crypto 10 Index investors and its price drivers, it now is time to look at the different payment methods that you can use to buy/trade the fund.
Crypto and debit cards currently are some of the most popular and acceptable payment methods. Most crypto trading platforms that list B10 will, therefore, let you buy Crypto 10 Index with credit/debit cards.
In most brokerages, card deposits are free. Therefore, you will only have to part with the transaction charge imposed by your card provider. Importantly, B10 trading platforms have oversimplified the process of buying Crypto 10 Index and narrowed it into no more than a few steps.
Most Crypto 10 Index trading platforms will also let you buy into the fund via supported eWallets like Skrill and Neteller. These payment methods have become popular with crypto and derivative traders because of their ease of use and inexpensive trading fees.
Most of these eWallets will not charge you a transaction fee when you deposit funds into a brokerage account. However, you first need to confirm whether your preferred Crypto 10 Index trading platform supports eWallets payment options and if the electronic wallet is accepted in your country of residence.
PayPal is the undisputed leader of online payments and one of the most preferred payment methods when it comes to buying the Crypto 10 Index. Some of the factors that endear it to B10 crypto traders include its ultra-fast transaction processing speeds and highly competitive fees.
Note, however, that it is only available in select countries across the world. You, therefore, need to ensure that your preferred Crypto 10 Index trading brokerage supports PayPal when choosing a crypto trading platform.
Bank wire transfer is arguably the most accessible deposit and withdrawal method. Where all other payment options fail, bank wire transfers stand out. You, therefore, could also choose to buy Crypto 10 Index with a bank transfer.
In addition to its accessibility, the bank wire payment option is also preferred by large-volume traders as it supports relatively higher deposit/withdrawal limits. The downside to this, however, is that it takes between 3 and 8 business days for most Crypto 10 Index trading platforms to process bank wire deposits and withdrawals.
Crypto exchanges like Binance let their platform users buy cryptocurrencies anonymously, especially if they are pure crypto-to-crypto exchanges. But most brokerages won’t let you buy Crypto 10 Index anonymously (Without ID verification) as it involves fiat deposits.
The process of buying Crypto 10 Index is quite easy and straightforward regardless of your preferred crypto trading platform. You do not even need special skills to start trading the Crypto 10 Index. And to get started, here are the two things you need.
Trading account: Start by choosing a trading platform that lists the Crypto 10 Index and create an account with them. In most cases, your preferred platform will only ask for personal information and demand that you verify your identity.
Investment capital: You will then need to deposit funds into the approved trading account. Note that the minimum initial deposit amount required varies from one trading platform to another. At both AvaTrade and Plus00, for instance, you will need to deposit a minimum of $100 before you can start trading.
How Much Do You Need to Buy/Trade the Crypto 10 Index (B10)?
There typically is no standard investment minimum needed to open a Crypto 10 Index trade. The online brokerages offering Crypto 10 Index trading get to set the trade limits for their individual platforms. Note, however, that the minimum trade limit required when buying the crypto derivative at a brokerage that gives users access to leverage is relatively lower than the requirement at exchanges that sell actual cryptocurrencies.
In addition to exchanges determining how much you need to trade Crypto 10 index, there are several other factors that can help you determine how much you need before you can start buying the fund.
These include your disposable income, your crypto derivative trading experience, and your risk tolerance.
Traders with low crypto derivative trading experience and even lower risk tolerance should consider starting at the demo environment. Virtually all derivative trading platforms will provide you with a free demo account for practice trading. We also advise that they consider engaging a professional crypto trader to help them trade and manage risk.
Unlike actual cryptocurrencies that be traded at an exchange and peer-to-peer trading platform and hybrid exchanges like eToro, Crypto 10 Index is primarily offered by brokerages. And the fact that it is one of the most popular crypto indices around has ensured that it has been picked by virtually all the leading online brokerages.
Seeing that Crypto 10 Index has been picked up by numerous crypto trading platforms, finding the best brokerage to trade with can be challenging. How do you even vet different brokerages and how do you tell which promises better services? We have come up with five factors that every crypto trader must consider when finding the best Crypto 10 Index trading platform.
We understand that choosing the best brokerage to buy and trade the Crypto 10 Index. But we have helped you get started by vetting numerous online brokerage and coming up with what we consider the 6 best places to trade Crypto 10 Index today.
Capital At Risk
AvaTrade is a forex and global CFD trading platform started in Australia but with its global headquarters in Ireland. It was started in 2006 and it provides traders access to multiple CFDs (stocks, commodities, and cryptocurrency) and such other derivatives as the Crypto 10 Index. It stands out because of its solid reputation, and innovative trading platform, as well as competitive trading and non-trading fees.
To start buying and trading the Crypto 10 Index on AvaTrade, you first need to create a user account with the broker and verify your identity. The process is speedy and straightforward. You will then need to deposit funds and the broker supports a wide array of payment methods, including bank wire, eWallets (Skrill and Neteller) and credit/debit cards. The minimum you can deposit in AvaTrade is $100. AvaTrade doesn’t impose deposit processing fees and the spread for trading the Crypto 10 Index on the platform though variable, is still highly competitive.
Other factors that make AvaTrade unique and one of the best places to buy cryptocurrencies include its highly innovative trading platforms that include a web trader, desktop and mobile apps and the proprietary AvaOption platform. Further, AvaTrade is registered and regulated in multiple jurisdictions, maintains a highly responsive customer support team, and operates multiple account types.
72% of retail cfd accounts lose money
Plus500 is an online trading platform and one of the few publicly traded CFD brokerages, seeing that it is listed with London Stock Exchange (LSE). It was started in Israel in 2008 but has since expanded its operations to multiple countries across the world especially in Europe, Asia, and North America. On the platform, users get to buy and trade such Forex, shares and commodity CFDs, ETFs, Options, cryptocurrency CFDs, and Crypto indexes like the Crypto 10 Index.
Plus500 is easy to interact with as its friendly user trading platforms appeal to both beginner and expert traders. The account creation and identity verification process with the brokerage is easy and rather straightforward. Plus500 then supports a wide range of deposit and withdrawal methods, including debit/credit cards, bank wire transfer, PayPal, and e-wallets (skrill, Neteller).
Like most another crypto 10 Index trading platforms, Plus500 doesn’t charge deposit or withdrawal fees. It also describes itself as a commission free-broker, implying that you won’t be charged a broker commission for trading on the platform. You will only be required to part with the highly competitive spread.
Other factors that Plus500 is one of the best places to buy Crypto 10 Index include its highly innovative trading platforms, an easily accessible and highly responsive customer support team, and the fact that it is one of the most regulated crypto trading brokerages. Traders also fancy its low deposit minimums of $50 for PayPal and $100 for bank wire and cards as well as its fast trade execution speeds.
70% of retail cfd accounts lose money
IG is one of the oldest and most reputable online trading platforms. It was founded in 1974 in London, UK, though it has since expanded its operations to cover about 23 Countries in 5 continents. Further, the IG Group is a publicly traded company and listed on the London Stock Exchange. It makes it to our list of the best places to buy and trade Crypto 10 Index because of its solid reputation, highly innovative trading platform, and user-friendliness.
Over the years, IG has put in place multiple measures aimed at making their platform as easy to use and appealing to both novice and pro derivative traders as possible. They have made it possible for traders to operate their IG trading accounts through such popular and highly versatile trading platforms as the MetaTrader 4, their proprietary Web trader platform, and the L-2 Dealer platform.
These present Crypto 10 Index traders on the platforms with such benefits as the ability to automate trades and access to the most advanced trading and analytic tools. To get started with either platform, you only have to start creating a user account with IG, verify your identity, deposit funds, and start trading.
The minimum deposit amount on IG is $100 with supported payment methods being PayPal, credit/debit cards, and bank wire transfer. The minimum trade size for Crypto 10 Index on IG is 0.2 lots and you have access to leverages of up to 1:5.
Other factors that help IG make it here include its commitment to the security of client deposits, the fast order execution speeds on its platforms, and the fact that it provides all its platform users with free demo account for practice trading and strategy testing.
Now that you are familiar with the BITA 10 Index, its composition, and where to buy, it is also important that we look at the three key ways in which it can be used.
The Crypto 1O Index has been designed to serve both as an investment product and as a benchmark tool for the crypto industry. You can, therefore, use it to track the performance of the crypto industry, especially in gauging the crypto investor sentiment. When the market is doing well and traders are optimistic about the future price action of different coins, the index price will uptrend and vice versa.
You could also choose to trade the Crypto 10 Index. Hereinabove, we have discussed the different ways in which you can trade the index fund. Use one of the highlighted trading strategies to start trading the crypto asset.
You could invest in the Crypto 10 Index over the long term as you would with any other cryptocurrency. Since its establishment, the crypto index price has increased steadily and it is expected to continue rising especially as the different coins making up the fund continue setting all-time highs. But unlike investing in a single digital currency, the Crypto 10 Index benefits from fairly tamed volatility as the shock from explosive price action from any of the coins is absorbed by the rest of the fund.
There is limited information about the Crypto 10 Index fund on Reddit safe for the announcement about the launch of what PRNewswire refers to as a series of digital asset indexes and benchmarks by BITA. There is an insufficient discussion about the index performance or its composition on Reddit.
There nevertheless have been a lot of mixed reactions to crypto indexes within the Reddit community. A majority of the contributors laud the idea of indexes and benchmarks as a way of complimenting actual crypto coin trades as well as their input in adding to the metrics that crypto traders would use in assessing market performance.
The dissenting voices, however, do not see the value of these indexes. They argue that while they could work in the traditional markets where the performance of investment products is highly uncorrelated, most cryptocurrencies within the crypto market tend to mimic Bitcoin’s performance. They argue that the huge correlation between Bitcoin and other cryptocurrencies and its dominance over the rest of the crypto market beats the need for a crypto basket as the price of all the constituent coins will take a cue from Bitcoins price action.
As is the case with Reddit, we couldn’t find any information about the Crypto 10 Index on the Quora platform. Nevertheless, the discussion about the relevance of Crypto 10 indexes and debate on the best crypto index around is as life here is as it is on Reddit.
Many Quora platform users have raised multiple queries about crypto indexes on the platform. Most of the responses are hugely positive about the need for these indices and benchmarks. Their proponents argue that indexes help crypto traders make more informed trade decisions and provide investors with more diversification options.
As is the case with Quora, crypto index opponents have questioned their relevance, especially when put into account how deeply correlated the larger crypto market is to Bitcoin prices. Others argue that since these indexes have only been around for a few years, they don’t present investors with much information to help determine their viability as an investment product.
The Crypto 10 Index presents both crypto traders and investors with an additional revenue stream. It also provides them with an additional metric for measuring the crypto market performance and gauging trader sentiments. First introduced to the crypto market in 2018, the index fund has performed exemplarily well which saw it attract a lot of attention from the crypto community and listed with virtually all the most popular crypto derivative trading platforms.
In this post, we have gone over everything you need to know about the crypto 10 index and even told you of the best places to buy and trade the index. Check the brokerage that appeals most to you, create an account here, deposit funds, and start trading the Crypto10 Index.
The Crypto 10 Index is composed of the ten largest cryptocurrencies by market cap. At the moment, these include Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Binance Coin (BNB), Dogecoin (DOGE), Polkadot (DOT), Chainlink (LINK), Uniswap (UNI), Litecoin (LTC), Bitcoin Cash (BCH).
The Crypto 10 Index was composed and is regularly updated by BITA – a highly innovative Fintech company in Germany. It is one of the several indexes designed by the company.
You will need to start by creating a trader account with one of the brokerages we have highlighted above. Verify your identity and make a deposit. Search for the Crypto 10 Index on their list of supported financial instruments, click on the buy option, and customize the trade by setting the trade amount, stop loss and take profit levels and decide on the amount of leverage to use, then click the buy button.
In this post, we have discussed, in detail, the four best places to buy and trade the Crypto 10 Index today. To find the brokerage that works best for you, you have to compare them all and look at such factors as the supported payment methods, availability in your country of residence, their total transaction fees, and only create an account with them if satisfied these will work for you.
Yes, it is possible to buy the Crypto 10 Index with PayPal, albeit indirectly. You will have to start by finding a brokerage that supports PayPal deposits, fund the account, and use the deposit to buy the fund.
All the brokerages we have highlighted here are quite versatile and allow you to trade a fraction of the Index fund. There, therefore is no standard limit on how much you need to start trading the Index fund. As is with all other crypto and conventional investments, the minimum you can trade will often be determined by the minimum trade amount set by your preferred broker while the maximum is hinged on a number of factors, including your risk tolerance and disposable income.