CRE8, the first crypto index in Indian Rupee, has been launched by CoinSwitch; this is how it functions

The Crypto Rupee Index has been launched by CoinSwitch (CRE8). According to the crypto exchange, it is India’s first benchmark index for measuring the performance of the Indian Rupee-based crypto sector.

CRE8 monitors the progress of eight crypto assets that account for more than 85% of the entire market capitalization of digital currencies traded in Indian Rupee.

“The index provides a trustworthy, real-time view of the Indian Rupee-denominated Crypto market based on actual trades, enabling Indian users to make informed investment decisions,” said Ashish Singhal, co-founder and CEO of CoinSwitch.

The index provides real-time insight into the crypto market taking into account CoinSwitch transactions, and it is updated over 1,400 times a day to ensure that it reflects real-time market movement.

CRE8 is distinct from other crypto indices in that it was created with Indian crypto investors in mind. The majority of crypto indices are currently US-based. As a result, they do not represent onshore pricing in India. India’s crypto market, according to Coinswitch, is influenced by a variety of factors, including domestic demand and supply, global prices, and INR exchange rates. This is when CRE8 enters the picture to fill the void.

In its index composition, CRE8 contains the top eight crypto-assets by market cap, such as Bitcoin, Ethereum, Ripple, Binance coin, and Cardano. Stablecoins and derivatives of other index components are not included.

The coins included in the index are chosen based on the following criteria:

• Listed and Trading: The crypto asset must have traded for at least six months on CoinSwitch’s platform.
• Currency: They must be available for trading in INR on the CoinSwitch platform.
• Liquidity: The crypto asset should have a minimum daily trading value of Rs 5 lakh for each day during the last 3 months.

“Passive investing is on the rise, due to benefits like- lower cost of investment and greater returns over the long term compared to active investing. Also, referring to it can help you analyze the state of the crypto market and plan. With it, you won’t need to refer to the total market cap of the crypto market to analyze the market sentiment,” the company said in a blog post.