npm install
node index.js
Hypothesis:
- a top 10 can be maintained manually: the list of coins is quite consistent due to their current dominance or relative market stability - difficulty: easy; estimated maximum transaction per rebalancing: 13
- a top 20 can be maintained manually - the list of coins is quite consistent due to their current dominance or relative market stability - difficulty: easy; estimated maximum transaction per rebalancing: TBC - difficulty: TBC
- a top 30 cannot be maintained manually - the diversity of coins entering and exiting the portfolio may cause more than 30 transactions per rebalancing
Moving from one top to an other during a rebalancing is not restricted.
- Estimated fees per week
See market-capitalization weighted index
Methodology:
- Retrieve the top X coins from the coinmarketcap.com API (https://api.coinmarketcap.com/v1/ticker/?limit=20&convert=USD)
- Calculate the market cap of each coin (Price * Circulating Supply)
- Sum the market cap of each coin
- For each coin, divide the coin market cap by the total market cap. We will call this percentage the uncapped_weight.
- Define an initial deposit (in fiat currency) that will be used to build the portfolio
- Take the initial deposit and for each coin, redistribute it based on the corresponding uncapped_weight.
Pros:
- A cap-weighted index is a a self-rebalancing methodology as it reflects exactly how the markets behave
Cons:
- BTC or other currencies dominance due to no hard cap
- Tends to give too much weight to securities the market has overvalued and too little weight to ones it has undervalued. As a result, true market value is skewed.
This strategy defines a market cap ceiling. See Single Level Company Capping - page 11.
This method is used by Crypto20
Methodology:
- Any coin whose index weight is greater than y% is capped at y%.
- The coin of the remaining index constituent coins are increased as a consequence of reducing the weights of the larger coins.
- The weights of uncapped constituent coins are then checked and if they exceed y% they are also capped at y%.
- This process is repeated until no company weight exceeds y%.
Pros:
- protects against a single coin dominating portfolio composition whether it be bitcoin now or another coin in future
- provides broad market exposure with acceptable turnover and mitigates risk by more evenly weighting the tracked assets.
https://www.bitwiseinvestments.com/index
Partial units Cash amounts
- ZAG Buy 6 units Buy 6.5062 units Spend $100.00
- VCN Buy 9 units Buy 9.2764 units Spend $300.00
- XAW Buy 23 units Buy 23.3918 units Spend $600.00
API: https://coinmarketcap.com/api/ Methodology: https://coinmarketcap.com/faq/
Methodology: Github activity
- https://www.coingecko.com/buzz/understanding-coingecko-developer-metrics
- https://www.coingecko.com/en/methodology
No API available
API: https://www.cryptocompare.com/api/#
See ccxt libraries - access to 90 exchanges APIs
https://www.bitwiseinvestments.com/index https://btcmanager.com/investing-cryptocurrency-index-tracking/ https://github.com/aboutlo/crypto-index-fund https://www.bitwiseinvestments.com/index https://static.crypto20.com/pdf/c20-whitepaper.pdf?_ga=2.92950557.1013622623.1514504485-1579083509.1512601968 http://www.ftserussell.com/research-insights/education-center/how-are-indexes-weighted https://www.bitwiseinvestments.com/index
https://btcmanager.com/investing-cryptocurrency-index-tracking/
https://techcrunch.com/2017/10/16/the-hold-10-index-is-a-passively-managed-fund-of-the-top-10-cryptocurrencies/ https://github.com/aboutlo/crypto-index-fund
http://www.ftse.com/products/downloads/Capping_Methodology_Guide.pdf
https://crypto-compare.github.io/index-comparison/ https://www.cnbc.com/2017/10/06/fundstrat-launches-five-indexes-to-track-bitcoin-and-other-digital-currencies.html
Time keeps on slippin’: Laspeyre vs. Paasche indices http://www.ftserussell.com/research-insights/education-center/calculating-index-values