There are a total of about 50 trading assets on Binomo. They include currency pairs, stocks, and indices of stock exchanges, which is basically the standard range for most trading platforms. However, the two most popular assets are EUR/USD and CRYPTO IDX. The first one is the currency pair of the euro and the dollar, and the second is the cryptocurrency index. The crypto index is very popular among Binomo traders. What is it, what are the advantages of it, and why is it more profitable to trade on cryptocurrency than other assets? In this article, we will answer these and other questions related to this topic.
A brief excursion into the world of cryptocurrencies
The global financial market was hit by the cryptocurrency phenomenon only relatively recently. Bitcoin first appeared in 2009, and it’s been quite popular among a broad audience since 2011. 2013 and 2017 were triumphant years for the entire cryptocurrency market. Cryptocurrencies are a new payment system that is entirely virtual. A unique feature of them is the extreme instability of their rates. For example, in 2017, the Bitcoin rate increased over 40-fold. No other financial asset has shown such high growth rates in a short period of time.
The advantages of cryptocurrencies from the point of view of the trader:
- high level of activity, the rate is constantly fluctuating;
- decentralization and independence from many fundamental factors;
- round-the-clock availability for trading, no days off or breaks.
The high level of volatility of cryptocurrencies is the main reason for its popularity among traders. They consider this new type of asset to be a profitable tool for trading that makes it possible to earn a stable profit. Another key point is its independence, which improves the performance of technical analysis techniques. When trading is conducted on ordinary currency pairs, the rate is always extremely dependent on a number of economic and political factors. That’s why experienced traders always monitor the financial news, even if they are trading on technical analysis strategies. With cryptocurrencies, the situation is not the same. Due to the decentralization of the Blockchain system, cryptocurrencies don’t really respond at all to political or economic decisions in individual countries.
CRYPTO IDX asset overview
The pricing principle of the crypto index does not differ from the formula for calculating conventional indices, for example, NASDAQ. It is based on a certain amount of input data – the amount of which can be unlimited. Next, there’s a simple calculation of the arithmetic mean. This is the basic principle that underlies the formula for calculating all exchange indices. However, some of them often use a slightly modified formula, but this does not play a key role since the basic means of calculating the arithmetic mean remain unchanged.
CRYPTO IDX – this is the average value of the rates of 4 popular cryptocurrencies. The initial data used is the quotes of Bitcoin, Litecoin, Ethereum, and Zcash. The averaged values are plotted as a single number. Binomo receives its quotes from official sources from Thomson Reuters, and calculations for the crypto index are carried out within the system.
For traders who work using technical analysis methods, the theoretical part is usually of little interest. Therefore, let’s do a practical consideration of the benefits of the crypto index.
CRYPTO IDX advantages for Binomo traders:
- 24-hour availability – it’s the only trading asset that can be traded 24/7/365;
- suitability for short-term trading – due to its high volatility, the crypto index, unlike conventional currencies, makes it possible to create a full candlestick chart even on a 5-second time frame;
- the high percentage of profit – the average level of return on CRYPTO IDX is 75-89%;
- the effectiveness of technical analysis – indicator analysis shows the greatest performance figures on cryptocurrency charts.
However, the crypto index does have a flaw. It is an internal synthetic asset on Binomo which is not available on other platforms. Therefore, it cannot be opened for analysis on third-party services, such as LiveView from TradingView. This makes it impossible to analyze using any other tools besides those present in the Binomo range.
The cryptocurrency index is one of the 2 most popular Binomo assets. It fits perfectly into the overall concept of a trading platform that focuses on short-term trading for1-60 minutes. Fixed profits on contracts provide up to 89% in returns on an investment for a period of 30 seconds. That’s why many traders prefer not to trade on cryptocurrency on specialized exchanges or Forex, but on platforms like Binomo instead.