What is an Index?

What is an Index?

An index is a method to track the performance of a group of assets in a standardized way. Indexes typically measure the performance of a basket of securities intended to replicate a specific area of the market. These could be broad-based indices that capture the entire market, such as the Standard & Poor's 500 Index or Dow Jones Industrial Average (DJIA), or more specialized indexes that track a particular industry or segment.

KEY TAKEAWAYS

• An index measures the price performance of a basket of securities using a standardized metric and methodology.

• Indexes in financial markets are often used as benchmarks to evaluate an investment's performance against.

• Passive index investing has become a popular low-cost way to replicate the returns of popular indices such as the S&P 500 Index or Dow Jones Industrial Average.

SOURCE: Investopedia

With Index being a standard in the traditional financial market, we aim to bring the same benefit and usability to the crypto industry. However, navigating that space can be even more complex than the traditional market. With a strong knowledge of the tech behind each project launching, we aim to simplify this and help customers invest in the ever-growing space, all while ensuring that the research and background checks are done on each project joining the Index.