Financial markets are not based solely on buying cheap stocks to sell them expensive. On the contrary, they are full of important financial products that allow the best informed traders to make great profits. Among these products would be the investment in indices such as Crypto 10, developed by BITA and marketed in Plus500. And in which we will teach you to invest today.
The crypto volatility index
Already in CriptoTendencia we have talked about this product. However, it is worthwhile to quickly review what the Crypto 10 index consists of. This financial index was created by the German company BITA, with the objective of monitoring the general state of the cryptocurrency market. Studying for it, the trend in the price of 10 different crypto assets, Bitcoin, Bitcoin Cash, Ethereum, Ripple, EOS, Litecoin, Monero, Cardano, IOTA and Dash.
This means that, investors who wish to put their capital in this index, would not be betting solely on a cryptocurrency such as Bitcoin or Ethereum. But, they would be diversifying their investment so that the profits or losses of the operation reflect the movement of various assets, and thus be less likely to suffer losses.
Of course, the value of the crypto or Crypto 10 volatility index will not be determined equally by these 10 cryptocurrencies. But each of them has a specific weight within the value of the index, according to its market capitalization in June 2018, when it was created, and therefore of its importance for the crypto market.
How to invest in this index?
Now, although the advantages of investing in the crypto 10 index are clear and not in each cryptocurrency separately. Leaving the future of our investment in the development of crypto assets as a whole, and not only in the swings in the market of a single virtual currency.
We still have to answer a question: How can we put our money in the crypto volatility index to start generating profits? And luckily, thanks to the existence of investment platforms like Plus500, the answer to that question is very simple.
And, any investor who wants to invest in the Crypto 10 index, can purchase Contracts for Difference (CFD) from the index on the Plus500 page. They function as a “bet” with respect to the future value of an asset. Predicting the trader if the price of the trader will rise or fall, the profit resulting from the operation being the difference between the initial price of the asset and its final price if it is correct.
If, on the contrary, the trader has failed in its prediction, the loss will also be the difference between the initial and final price of the asset. What makes this financial product, one that can generate tremendous gains and losses, especially when combined with too high leverage, on platforms such as Plus500 offer this option.
Steps to invest in the Crypto 10 index
Now, if we have already decided to invest in the crypto volatility index, there are a number of simple steps that we must follow to start acquiring contracts as opposed to the crypto 10 index. Starting, of course, with creating an account on the platform Plus500, and charging it with enough money to perform the operation.
Once we have done this, we will only go to the central panel of Plus500, and in the left menu we will select the option “indexes”. Once there we will go to the “indexes of the sector”, and finally we will click on “crypto index 10”. This will immediately display a section with all the necessary information to understand the current state of the product in the market.
Finally, you will only have to click on the “sell” or “buy” option according to your preference. Displaying a menu where you can select the amount of CFD that you will negotiate, as well as prices to close the operation downwards or upwards, if you wish.
From this moment on, it will be enough for you to keep track of your investment in the left menu tab “Open positions”. Being able to close your position at the time you prefer. Being like that, in just a few minutes, you will be investing in the crypto volatility index thanks to Plus500, and with some skill, you will generate great profits in a short time.