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The CVI index is a VIX for crypto.
CVI is an innovative, decentralized, stable, transparent, informative, and replicable benchmark for cryptocurrency volatility information.
The index was created by the COTI team that has partnered with Prof. Dan Galai, the creator of the original VIX, in order to create a “market fear index” for the crypto market.
The index tracks the 30-day implied volatility of Bitcoin and Ethereum. The index ranges between 0 and 200 and is produced based on a Black-Scholes option pricing model, which computes the implied volatility of cryptocurrency option prices together with analyzing the market’s expectation of future volatility.
Trading the CVI Index is a great way to find profitable trading opportunities in the market without having to predict the direction of the price. Traders make a profit on volatile markets, whether the prices are going up or down.