Plus500, a leading stocks, forex, CFD and crypto broker, has recently launched a new financial instrument that will allow its clients to trade the top ten cryptocurrencies all at one time. This new Crypto 10 index incorporates Bitcoin and the nine most popular and well-established altcoins in a single trade.
The Crypto 10 Index
Plus500’s new index was constructed by BITA, a European index software company regulated by BaFin in Germany, and creates a new way to trade cryptos. The index allows the broker’s clients to speculate upon the overall crypto market sentiment without risking the sharp volatility that a single currency would demonstrate.
BITA’s Crypto 10 index helps traders to take advantage of this consistent growth in crypto, blockchain and DeFi applications by going long or short on the performance of a basket of top tokens. The coins incorporated within the index are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC), EOS (EOS), Cardano (ADA), Monero (XMR) and Dash (DASH) and Bitcoin SV (BSV). Each component is weighted differently, based on many factors like market capitalisation. Reassuringly, over half of the index is comprised of BTC, ETH and XRP, providing a solid foundation of established and proven projects with a large market share.
Over the course of 2020, the top cryptocurrencies rose in market value by 159%, something that was maintained by Bitcoin (BTC) into 2021, reaching $64,863 in April. This is not the only impressive growth in the DeFi industry, however, with Ethereum-based contracts and assets like NFTs taking the internet by storm. The most expensive NFT, a piece of digital artwork by Beeple, sold for $69 million in February 2021.
The option to trade CFDs (contracts for difference) on cryptocurrencies is popular, bringing many benefits like leverage, lack of ownership, bearish opportunities and reduced risk of capital being stolen. These advantages, coupled with the liquidity, interest and volatility of the crypto markets has made crypto CFD trading a massive industry.
However, the coupling of leverage, youth, complexity and volatility has led to the FCA and some other financial watchdogs banning the sale of these instruments to retail clients. Those individual investors from these restricted countries can still purchase and trade crypto CFDs with offshore brokers.
Plus500 is an innovative, London-based broker offering a competitive suite of 2,000 financial instruments, including stocks, options, foreign exchange, cryptocurrencies and CFDs. The brokerage firm is listed on the London Stock Exchange (LSE) and boasts 15 years of financial experience and thousands of retail clients. Holding licenses from the FCA, CySEC and ASIC, the broker is reputable and trustworthy.
Getting started with trading using Plus500, retail customers need a $100 minimum deposit and one of 16 supported payment methods, including wire transfers, credit cards and e-wallets like Skrill. Clients can then take advantage of the broker’s range of proprietary trading platforms, including an integrated web trader, a stock-focussed investment platform and both iOS and Android mobile apps.
This new crypto 10 DeFi index demonstrates a commitment from Plus500 to continue to provide top-tier retail trading services, something likely to continue thanks to the new Tel Aviv R&D centre.