Singapore-based crypto exchange BingX launched ALTCOIN Index, the first futures index involving altcoins like ETH, XRP, SOL and DOGE.
BingX’s new ALTCOIN Index provides users with the opportunity to monitor the current market trends for multiple altcoins displayed on one index. According to BingX’s press release, the index will feature some of the top cryptocurrencies by market cap, excluding Bitcoin (BTC) and stablecoins.
The ALTCOIN Index includes ETH (ETH), XRP (XRP), SOL (SOL), BNB, DOGE, ADA, TRX, AVAX, and SHIB. Through the index, users can track trends and price changes without having to buy individual tokens or ETFs. Thus, traders can buy or sell USDT trading pairs alongside altcoins on the index.
A futures index is an instrument typically used to monitor stock markets. Its allows traders to track the performance of certain assets in the market, such as commodity shares.
Therefore, investors are able to assess or hedge against the market movements to determine the best course of action. This is because traders can immediately monitor other assets within the broader market, not just the ones they hold.
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In the case of altcoins, BingX’s new platform allows traders to directly assess the market using tiered leverage options and competitive rates without the burden of managing multiple positions at once. This enables users to further diversify their asset choices and mitigate trade risks linked to individual asset volatility.
Chief Product Officer of BingX, Vivien Lin, stated the new futures and altcoin trading feature will offer a number of major cryptocurrencies and compile them into a singular list to make it easier for users to monitor market trends.
“This index trading pair should help our less experienced users with their trading goals more easily, particularly when they are unsure which asset to trade and just want to trade major altcoins in general with leverage,” said Lin.
The platform ensures that the index composition will be updated regularly on a quarterly basis to showcase current movements response to market conditions.
Previously in October, BingX unveiled its new security feature, the wallet firewall. The feature is meant to protect the system against external threats, following a major hacker attack that led to a $43 million loss for the exchange only one month prior.
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