The new LedgerX volatility index (LXVX) helps investors keep track of price movements of expected bitcoins

The instability of Bitcoin is as worrying for traders as it is for investors. Many potential investors refuse to operate for this simple reason. This is why LedgerX decided to create a "tracker" that helps to track and anticipate fluctuations.

The LedgerX volatility index (LXVX), as announced on Monday by the company, will be used to predict the possible flow of bitcoins. This will be done by analyzing information from bitcoin options regulated by many different institutions.

President and Chief Risk Officer at LedgerX, Juthica Chou, explained that the LXVX it is an important tool very similar to the Volatility Index (VIX) that is used by stock market shareholders to measure and manage risk due to the volatility also present in the stock market.

Chou has experience in the stock market as a volatility trader with Goldman Sachs and is using this experience to help the bitcoin market.

Because LXVX is important.

According to Chou, LXVX is very important because it reduces risks and also encourages a more solid and participatory market. He made a comparison between the bitcoin market at the end of 2018 and the current state now at the start of 2019. He said,

"If you look fundamentally from the start of the year, the LXVX is down about 20 percent so it's down to around 68, and that's still about three times the volatility of the stock market, but it's very significant in the bitcoin space because it shows that there is less fear and uncertainty than what existed in December ".

Availability

Currently, LXVX is not yet marketable. However, a product that will be a possibility in the near future.

successes

For a long time, the cryptography market has suffered an annoying bear market, but LedgerX it seems to have risen well above the situation. Calculating from the beginning of October 2017, the company currently has a settlement of over $ 500 million in bitcoin derivatives through over 50,000 contracts. Chou said that they were

"A lot of put options trading in December and at the end of November while the broader market was selling off. Now that we are recovering, we are seeing a lot more call options."

The future

Chou is very optimistic about the future of LedgerX and how well they can flourish using the index, despite the crypto-bear market. The company hopes to get more and more numbers with their new innovation.