Hedge & Its Flagship BC30 Index | How It Is Different from S&P 500 INDEX HEDGE Follow Nov 24, 2017 · 5 min read

S&P 500 Overview

S&P 500 is one of the leading Stock Indices representing the United States Capital Market. S&P stands for Standard and Poor. It seeks to represent the entire stock market growth in United states.

Stocks & Derivatives are one of the most popular and profitable instruments of investments. Stocks, which represents the ownership in a company, provides an effective & profitable return on investments along with voting rights in a company. If we talk about United States Financial Market and indicator of its growth, then S&P 500 is one of the crucial indicators which indicates the growth of whole Financial sector of United States.

S&P 500 tracks the 500 most widely held stocks on New York Stock Exchange (NYSE) or NASDAQ. It seeks to represent the entire stock market by combining the risks & returns of all large Capital companies existing in United States.

What Companies Can Be Listed Over S&P 500 ?

S&P 500 tracks the market capitalization of the companies listed in this very index. To become a part of S&P 500, a company has to fulfill some conditions which are as follows:

· A company must be located in the United States and have a market cap of at least $5.3 billion.

· At least 50 percent of the corporation’s stock must be available to the public.

· Company’s stock price must be at least $1 per share.

· Company must have at least four consecutive quarters of positive earnings.

S&P 500 generally lists large capital companies and leading market players within their own industries. As of 2017, the 10 largest companies in the S&P 500 were:

Apple, Microsoft, Amazon, Facebook, Johnson & Johnson, Exxon Mobil, Berkshire Hathaway, JP Morgan Chase, Google, Alphabet A.

S&P 500 Use For Investors & Traders

S&P 500 generally represents the economy’s growth and for Investing purpose, S&P 500 plays a vital role. If S&P 500 is rising, it means the combined value of all the 500 stocks listed in index are rising, resulting a positive growth in economy’s GDP.

As an investors or trader, an individual can use S&P 500 index for investing in itself or he can simple use it as an indicators to know the growth factors and current trend of market.

Now, after the inception of Blockchain Technology and cryptocurrencies, there are abundant of crypto projects launched within 2–3 years which seeks to solve a problem within the economy. These crypto projects have their in-built currency which have certain use cases within their platform.

Now, with their widespread popularity and potential, people invested in these projects a lot and as a result their market capitalization has risen significantly.

These days people invest in cryptocurrencies as store of value to gain extra-ordinary returns in the future, ignoring the volatility of crypto market.

A market tool is needed to help people taking their investing decisions wisely in crypto verse so that they could make healthy returns while managing the high volatility of market.

That tool has come into existence in the form of Hedge and it’s flagship Crypto 30 (BC 30) Index

Let’s get to know about it:

Hedge Flagship Cryptocurrency Index: Buchman Crypto 30 Index (BC 30)

Buchman Crypto 30 Index is the flagship crypto index introduced first time worldwide by Hedge.

If you’re trader or investor, there are many indices available in the stock market like S&P 500, Dow Jones Industrial Average, NIFTY , BSE Sensex and many others. These indices are made of stocks prices of several companies and the function of these indices is to represent the change in market trend and market momentum by reacting to the change of each stock price.

Now, in the same way Buchman Crypto 30 Index seeks to represent the overall performance of the 30 largest cryptocurrencies worldwide by market capitalization. But it’s not only limited to cryptocurrency pricing actions but also stocks and other investment instruments. Basically BC30 would be a complete solution cryptocurrency and other financial instruments trading and investing. BC30 is the first flagship cryptocurrency index with an official and transparent rulebook. It is a viable underlying for financial derivatives thereof and a base for related indices, allowing traders and investors to easily gain market-wide exposure.

How BC30 Works?

Well, BC30 is a highly reliable, transparent and rule based index. This index is based on specific guidelines and there is an expert index committee which handles any unforeseeable and uncertain events. Being on Blockchain additionally ensures its security and transparency.

Among other things, a cryptocurrency needs to have, in order to qualify for inclusion in the index, sufficient market value, liquidity, security and reliable data feed from exchanges. In order to ensure sufficient diversification and tradability, the constituents’ weight is capped at 20%.

We all recognize the absence of specific exchange for each cryptocurrency. BC30 is designed as a secondary index, drawing inputs from price sub-indices for individual cryptocurrencies, whose trading pairs are weighted according to their trailing 7d volume.

Key Features Of BC30 Index

Representative

BC 30 index represents the major portion of crypto market by encompassing top 30 cryptocurrencies and their price actions. This index records each and every movement in their prices and provides specific tools for forecasting their future trend and momentum.

Diversified

The Constituents weightage is reserved to 20% and by doing so a proper diversification across the market is ensured without any uncertainties.

Transparency

BC30 follows certain rulebook which makes it highly reliable and transparent as compared to the traditional indices. The focus is to make this index usable for every market participant and by simplifying the rulebook, BC30 is a perfect crypto index for each trader and investors for the purpose of forecasting future price action.

BC30 Index Rulebook

BC 30 Rulebook contains the technical as well as fundamental details about the index. The following information are listed in this rulebook in great details:

· Index Concept

· Screening, Inclusion & Exclusion

· Weighting & Weight Capping of Each Cryptocurrency

· Index Adjustments

· Currency Forking

· Currency Reverse Forking

· Calculations Methodology

· Index Dissemination

· Contact Details.

You can get your hands on this rule book at the official website of Hedge.

References:

Hedge Website: https://www.hedge-crypto.com/

Hedge Whitepaper: https://www.hedge-crypto.com/wp-content/uploads/2017/08/Hedgetoken_Whitepaper_2017.pdf

Hedge Twitter Page : https://twitter.com/hedgetoken

Hedge Medium Blog: https://medium.com/hedge-token