Learn how to use Token Metrics Indices and frequently asked questions.
This video features Ian Balina and William Noble going over Token Metrics Indices.
Indices Overview
To access the Indices, click on “Data” and then on “Indices”.
You can use the “Index Selection” to select the “Investor Type”, “Time Horizon”, and “Investment Style”.
Based on what you choose the Token Metrics’ AI will give you a different output in the “Index Holdings”.
If you scroll down you can see the “Indices Holdings” section, where you can see the current date, initial price, portfolio weight, cash value, and amount of tokens for every token you have in the “Indices Holdings”.
At the bottom of the page, you will see a section called “Last Index Transactions”.
You can use this to look at the transactions the AI recommends doing, telling you what tokens it is buying, how much value, and what it is selling.
Webinar Questions
Indices
Q: I would like to learn how to use indices.
To be able to see the “Indices” go to the top Token Metrics, click on “Data” and then click on “Indices”.
Also watch the recording of the webinar, which has a demo, here.
Q: Are there going to be multiple indices to cater to needs if different investment objectives of customers?
Yes, you can use the “Index Selection” to select that fit your investment or trading style.
Q: It’s been quite a mission selecting the price prediction coins and tokens weekly. We have been using Binance to do it… Is there an easier way and place to make it happen. To get price prediction coins it can mean going through up to 100 coins on Token Metrics list – Thanks for the awesomeness . . we have had consistent weekly gains.
You can use the Indices and select the Trader option.
In the “Indices Holdings” section you will have the amount of growth that each token had, along with its predicted growth, initial price, portfolio weight, and cash value.
Q: How do I use the indices if I want to dynamic dollar cost average into a position?
How often should I rebalance the portfolio?
Do the indices tell me when to sell the coins/and take profit?
Pick an Index you want to follow based on your investment style, then go to the holdings section and use that as a reference. Look at the portfolio weight for each token and you know how much money you need to invest in each token. You can also look at the Sold Cash Value to see how much money you would make if you sold, and decided if it is worth it.
Q: What is the best medium-term hold with the greatest moon potential
Use Value Investor, with a Quarterly Horizon.
Since Value Investor Balanced ROI is the highest you might want to use the “Balanced” Investment Style.
All the cryptocurrencies in the indices need to have a trading volume greater than $500K daily.
Q: What do you think is the best way to currently use TM indices as a long term investor?
Go to the “Index Selection” and pick “Value Investor”, “Annually”, and “Balanced”.
The “Balanced” Investment Style will be a combination of Fundamentals and Technology.
“Annually” Time Horizon means that we would adjust our portfolio once a year.
Q: How do we use ratings vs indices to optimize token search? Thank you
Ratings and indices are different. Indices build a diversified portfolio based on the Token Metrics ratings. Indices basically take the ratings into action, to save you time and to make sure that you correctly manage risk in your portfolio.
Price Predictions
Q: Why are the price prediction models so much off lately? E.g for Cosmos token where the predicted price goes sharply down and the actual price has gone sharply up in July.
Cosmos had a rough season where one of the CEOs stepped down.
This might be one of the reasons that affected the value of Cosmos.
Also, keep in mind that price predictions will not always be very accurate and hence you
Q: In the total grade you give to a crypto. The weight of the Price performance or/and the Price prediction goes included in the 33.3% of the technical analysis? If the answer is yes, which %represent of the 33,3%
The ratings we have at the “Summary” section are totally different from the ratings we have at the “Price Predictions” model.
Price Predictions are based purely on past prices and trends, while the “Summary” ratings are looking at different indicators.
Trading
Q: How to day trade better and with more accuracy?
Check out this video.
If you are Trading you can use the Indices.
Select the filter with the highest ROI and use that to help you out.
You can also go to the Token Metrics ranks and focus on the top 5 coins.
Filter out coins that are Bullish or Very Bullish.
Then check out each token and see if the Price Prediction graph predicts an increase in price.
Token
Q: Based on current TM rankings, would Synthetix Network be considered the best Defi investment at this time if only choosing one Defi token?
The highest-rated DeFi coins we have are Maker, Kyber, Synthetic Network (meaning we consider Maker to be the best investment and Synthetic to be the third-best).
Q: I would like more information about MCO
MCO is already on Token Metrics.
Q: What are your thoughts on Bidao and even though the ICO wasnt supposed to be available for Americans, what should an american who does have the coins do to sell the coins after its launch (e.g. go to another country where the ICO was legal and sell it from there?) Please advise.
Ian Balina is not “Bullish” on this project since it is a very early stage.
The team is very young and feels like we should be cautious.
We should ask if we feel like this coin is better than Maker and Dai long term. If we do not feel like it, then it is probably better to wait.
Q: Do you have any analysis of the altcoin NIMIQ, listed on Kucoin? Also BAND Network?
We are currently researching BAND and we do not have an analysis on NIMIQ.
Our team will add those as projects to review.
Requests
Q: Is there a mastermind group to follow and share ideas? I’m new in the crypto space and only been investing for about 2 months.
We have a private professional group, and we have biweekly calls every 2 weeks.
These meetings are hosted by Ian Balina and Bill Noble.
You can get access to this by upgrading to the professional plan.
We also have a Telegram group chat.
We also have a forum which you can check out here
Q: Can we get notifications when the ratings change for tokens in our portfolio?
We are working on that as of right now.
Timeline for that is as early as 1 month and as late as September.
The target date is before Fall.
Q: When we will be able to buy eth, BTC from. Token Metrics platform?
It is something we are researching and considering for the future.
Q: Will it be available for API connection?
Currently, APIs are not publically available.
Other
Q: Are these portfolios we invest through Token Metrics only?
Indices are based on Token Metrics rantings.
They are not investable directly, so you need to go and invest it yourself outside of Token Metrics.
However, we would like to be able for our customers to invest through Token Metrics in the future and is something we are considering.
Q: How would you invest in DeFi for the long term?
Go to Value Investor and only look at cryptocurrencies that have high ratings.
Allocate the portfolio weights based on which tokens have the best grades.
Questions from Zoom
Q: How frequently do Token Metrics change?
They change daily.
Trader ratings change every 6-24 hours.
For Value Investors the Fundamentals and Technology grades change based on major events. Updated every 3-6 months.
Q: Is Price Prediction completely different from TA signals?
Yes, Price Prediction is completely separate from TA analysis.
TA looks at the technical indicators.
Price Predictions looks purely at the price chart historically to try to predict where it is going.
Q: Do the indices take into account gains made by staking?
No, staking games right now are not factored in. Maybe in the future, we will consider it.
