Indices are essentially statistical measures that track the performance of a group of assets. Learn more here.

From the Dow Jones Industrial Average (DJIA, or simply the Dow) to the Hang Seng Index (HSI), the world’s major stock market indices are vital benchmarks that reflect the performance of leading companies across regions. For beginning and veteran traders alike, such indices act as overarching market bellwethers that provide deeper insights into market trends and serve as tools for trading strategies, risk management and portfolio diversification.

Given their mass popularity, indices are widely traded in the forms of futures, options and 

 (ETFs), enabling traders to effortlessly hedge against volatility or speculate on market movements through their preferred instrument. In this article, we’ll explore the world’s biggest market benchmarks, their composition, significance in trading and their role in shaping global financial markets.

Indices are essentially statistical measures that track the performance of a group of assets. For example, by referring to the three major US indices, we can immediately tell how a particular segment of the market is performing, thanks to the snapshot provided by these indices. 

At their core, these indices provide a way to gauge market trends, manage risk and diversify portfolios by offering a broad view of different sectors or asset classes. They’re widely used in financial markets for investment strategies, and as benchmarks for evaluating performance.

While more popular indices typically track the prices of stocks, traders may also consider trading indices that take into account the performance of other asset types, such as commodities and fixed-income instruments (e.g., bonds).

How indices work — mechanics, composition and weightage

Beyond simple tracking, indices also serve as the basis for numerous financial products that enable traders to participate in broad market movements without needing to purchase individual assets. This unmatched level of accessibility makes indices crucial for both institutional and retail traders. To go one step further, the construction of an index — including the specific assets being included, and their weighting — can significantly impact the index’s behavior, and the extent to which it effectively represents its target market.

Overall, understanding these construction methodologies is vital for traders who want to accurately interpret index movements and make informed decisions. We’ll go into more detail on the inner workings of index trading in the subsequent sections of this article.

Index trading involves speculating on the price movements of a group of assets without directly owning them. This is typically achieved through financial instruments, such as contracts for difference (CFDs), futures or options. The following section provides a detailed explanation of the mechanics involved.

As previously mentioned, indices are composed of various assets, such as stocks, commodities or bonds, and their performance is tracked using different weighting methods. The most common methods include the following.

Now that you’re familiar with the technicalities involved with index composition, let’s dive deeper into the instruments involved with the trading of indices.

New to trading indices? No worries. Here’s a quick four-step process to help you get started.

In summary, index trading provides a way to participate in broad market movements through various financial instruments. It offers diversification and flexibility but requires careful 

, given the volatility associated with index trading.

Trading indices offers several compelling advantages that make them an attractive option for both novice and experienced traders. The following reasons are worth considering.

Indices can be categorized based on their coverage, weighting method and focus. 

Following are some of the main types of indices.

Index prices are influenced by a variety of factors that can be broadly categorized into economic indicators, company performance, market sentiment and external events. These factors interact dynamically, influencing the overall performance of indices and shaping market trends.

For traders looking to get started with index trading, 

 with deep liquidity and competitive spreads. For a limited time (from Mar 13 through Apr 12, 2025), we’re running a 

 in which traders can enjoy zero fees on selected index pairs, making it even more cost-effective to explore index trading.

Ultimately, trading indices can seem daunting, given their depth of assets and the mechanics involved. For example, the S&P 500 comprises hundreds of stocks, each with different amounts of weightage. If mega-cap stocks like Tesla were to face some form of volatility, there would definitely be an impact on the index. As such, beginning traders who are new to index trading must 

 prior to transacting with indices, given the risks involved with the use of leveraged instruments.

For those with a longer time horizon in mind, trading indices can certainly be useful, especially if you’re intending to 

 your entries over time when building up your position. Given the extent of diversification involved and the sheer amount of liquidity present, it certainly would make sense for any trader with a long-term bullish inclination to trade indices and hold their ETFs for the long haul.

With a reliable platform like Bybit Gold&FX, you’ll practically be spoiled for choice when it comes to navigating the diverse world of indices and other financial instruments. By empowering traders with access to real-time data, advanced charting tools and a user-friendly interface, Bybit Gold&FX helps traders make informed decisions when analyzing market trends and execute trades with precision.

Whether you're interested in tracking the performance of major stock market indices, exploring commodity indices or diversifying your portfolio with forex and gold, Bybit Gold&FX offers the necessary resources and support. The platform's focus on security and transparency provides traders with peace of mind, allowing them to concentrate on their investment strategies and capitalize on market opportunities. In essence, it transforms the complexities of index trading into an accessible and sleek experience.

Intermediate

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Indices: Trading the world’s biggest market benchmarks

Bybit celebrated the second anniversary of the Bybit Card at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch.

The S&P 500 dropped 1.39%, entering correction territory amid Trump’s tariff threats and trade war concerns. Gold surged to a record $2,988, driven by trade uncertainty, recession fears, and Fed rate cut expectations. The Coindesk Indices, which tracks the broader crypto market, fell by 0.90%, with Bitcoin and Ether down by 3.36% and 2.63% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is S, up 7.9% after 0xGasless launched AgentKit on Sonic, enabling AI-powered, gasless on-chain automation.

Sonic Labs (S), established in 2018, is an EVM-compatible Layer 1 blockchain built from Fantom, delivering over 10,000 transactions per second. Its native token, S, replaces FTM at a 1:1 ratio. The network prioritizes high performance, interoperability, and developer incentives. 

, enabling AI agents to execute on-chain actions with NLP-powered automation and gasless transactions via smart wallets. Developers can use Sonic AgentKit to build DeFi copilots or automate blockchain tasks and contribute custom tools through its open-source GitHub.

Check out the latest prices, charts, and data of 

Bybit celebrated the second anniversary of the 

 at its Dubai headquarters, highlighting its rapid growth with over 1.5 million cards issued since launch. The exchange announced a limited-edition Premium Metal Card coming in 2025, alongside enhanced user experience features such as an improved rewards program, stronger fraud protection, and wearables connectivity. Backed by Mastercard’s global network, the Bybit Card supports multiple cryptocurrencies and offers seamless payments at any Mastercard-accepting merchant. Bybit reaffirmed its commitment to expanding crypto financial solutions and bridging digital assets with everyday transactions.

Yesterday, BTC Spot ETFs saw $180.9M in net outflows, with GBTC losing $12.7M and non-GBTC funds dropping $168.2M.

 $EDGE tokens to active traders on Solana and EVM chains. Users who traded on Jupiter, Odos, Hyperliquid, and more can check eligibility and claim by depositing funds and trading $1K spot volume via TWAP. Airdrop claims open in 19 days, with a raffle for 500 users to win 100K $EDGE tokens.

Beginner

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Bybit marks Bybit Card’s second anniversary with new features and expansion plans

Dogecoin Spot ETFs would offer a regulated vehicle for investors to capture Dogecoin's price movements without directly managing the cryptocurrency themselves.

 is defying expectations, transitioning from a crypto punchline to Wall Street legitimacy. In a landmark shift, the US Securities and Exchange Commission (SEC) has formally acknowledged Spot ETF applications for DOGE from heavyweight asset managers, including Grayscale and Bitwise, potentially catapulting the Shiba Inu–themed token into regulated markets. 

 (ETFs) would cement Dogecoin’s status as a serious investment vehicle, challenging perceptions of meme coins as fleeting novelties. 

This article delves into the mechanics of a Dogecoin Spot ETF, the current state of applications, their impact on the crypto market and the broader implications of such financial instruments.

A Dogecoin Spot ETF is a proposed exchange-traded fund that would directly hold Dogecoin as its underlying asset, allowing investors to gain regulated exposure to DOGE’s price movements without owning the cryptocurrency outright.

A Dogecoin Spot ETF would mirror the price movements of Dogecoin by holding the cryptocurrency directly, thereby enabling investors to capture its market performance without the complexities of purchasing, storing or managing the digital asset themselves.

Asset managers — in this case, Bitwise and Grayscale — would securely store actual Dogecoin tokens in 

 that often use cold storage solutions to reduce hacking risks. This responsibility is entrusted to custodians such as Coinbase Custody, which would safeguard Bitwise's Dogecoin holdings. These custodians specialize in cryptocurrency storage and employ robust security measures, such as multi-signature wallets and offline storage, to ensure the fund's value remains closely aligned with Dogecoin's current market price, while protecting the assets from potential threats.

Authorized Participants — usually large financial institutions — play a key role in maintaining this alignment by facilitating the creation and redemption of ETF shares. When demand surges, these institutions purchase Dogecoin from the open market and deposit it into the fund in exchange for newly issued shares. Conversely, they redeem shares by returning them to the fund for an equivalent amount of Dogecoin. This dynamic mechanism helps ensure that the ETF’s share price consistently reflects the underlying asset’s value.

Once issued, Dogecoin Spot ETF Shares would be traded on traditional stock exchanges, providing investors with an established and secure platform to gain exposure to Dogecoin. The ETF’s net asset value (NAV) would be determined by a comprehensive pricing mechanism that continuously reflects the current market price of Dogecoin. This process relies on the 

, which aggregates data from multiple reputable cryptocurrency exchanges. 

Using this standardized reference, the ETF ensures that fluctuations in Dogecoin's price — driven by market supply, demand and investor sentiment — are accurately captured. Consequently, the NAV is updated in real time, so it would provide investors with a transparent and precise representation of the fund’s true market value.

With this structured approach, a prospective Dogecoin Spot ETF promises a streamlined, regulated avenue for investors to participate in the dynamic cryptocurrency market, seamlessly integrating digital asset exposure with traditional financial systems.

In January 2025, REX Shares (in collaboration with Osprey Funds) filed with the SEC, seeking approval for a Dogecoin Spot ETF. The following month, Grayscale Investments advanced its crypto offerings by submitting SEC Form 19b-4 to launch its own Dogecoin Spot ETF, signaling an intent to diversify beyond traditional assets like Bitcoin and Ethereum. Shortly thereafter, Bitwise Asset Management, Inc. filed both S-1 and 19b-4 registration forms for a similar ETF, with its proposed fund set to hold Dogecoin as the primary asset and determine its net asset value using the CF Dogecoin-Dollar Settlement Price benchmark.

The SEC has officially acknowledged these filings, initiating a comprehensive review process. The Commission is known for its cautious approach in approving cryptocurrency-based ETFs, due to concerns over market volatility, liquidity and investor protection. However, this acknowledgment suggests a willingness to assess the potential of integrating Dogecoin into regulated financial products. The approval process is expected to be methodical, potentially taking up to 240 days from the initial acknowledgment. Bloomberg analysts 

Despite these promising regulatory developments, market reaction has been mixed. While the filing of Dogecoin Spot ETF applications has generated significant interest among investors, Dogecoin’s price experienced a decline after an initial increase following the announcements, indicating that investor sentiment could be influenced by broader market dynamics beyond ETF-related news.

Current impact of Dogecoin Spot ETF applications on the crypto market

Following the ETF application announcements, Dogecoin's price experienced significant fluctuations. Initially, there was a surge in optimism, with 

 within 24 hours (as of Feb 14, 2025) as investors anticipated potential institutional adoption. However, this uptick was short-lived, and within a week, Dogecoin's price declined by over 7%. This retracement underscores the inherent volatility of the cryptocurrency market — and suggests that while ETF filings can boost confidence, they also introduce speculative dynamics that may lead to rapid price corrections.

This mix of enthusiasm and caution among investors reflects the duality of a market in transition, balancing prospects of institutional legitimacy and the realities of speculative volatility. On the one hand, potential approval of a Dogecoin Spot ETF is viewed as a gateway for mainstream and institutional investors to engage with DOGE, potentially leading to increased liquidity and market stability. On the other, the subsequent price decline following the ETF announcements indicates that the market remains sensitive to speculative trading and profit-taking behaviors. Investors are advised to approach such developments with a balanced perspective, considering both the opportunities and risks inherent in cryptocurrency markets.

What will it mean if a Dogecoin Spot ETF application is approved?

Should the SEC approve a Dogecoin Spot ETF, it would mark a significant milestone in legitimizing meme-based cryptocurrencies within a traditional financial structure. Such an ETF would allow investors to gain direct exposure to Dogecoin's price movements through traditional investment platforms, which in turn could lead to increased institutional participation as it provides a regulated and familiar investment vehicle for entities that may previously have been hesitant to invest directly in crypto.

The introduction of a Dogecoin ETF is anticipated to enhance the cryptocurrency's liquidity and market stability. By facilitating easier access for a broader investor base, the ETF could lead to higher trading volumes and reduced price volatility over time. The legitimacy conferred by regulatory approval could potentially bolster investor confidence and attract more capital inflows into Dogecoin.

Dogecoin Spot ETF approval could also set a precedent for other meme-based cryptocurrencies, such as 

 (SHIB), to pursue similar financial instruments. The Shiba Inu community has been actively advocating for a SHIB-based ETF, highlighting factors like strong diversification prospects and growing investor demand. Notably, after the Spot Ethereum ETF approvals in July 2024, Shiba Inu's pseudonymous lead developer, Shytoshi Kusama, hinted that SHIB could be next in line. 

As with a Dogecoin Spot ETF, the introduction of a Shiba Inu Spot ETF would provide investors with regulated exposure to SHIB, potentially increasing its adoption and market presence. However, the approval process for such ETFs is complex and subject to stringent regulatory scrutiny. While the SEC has approved ETFs for major cryptocurrencies Bitcoin and Ethereum, the path for altcoins like Dogecoin and Shiba Inu remains uncertain. Factors such as liquidity, market maturity and regulatory perspectives will play crucial roles in any approval process.

Looking to capture the market and trade DOGE tokens? Bybit offers the 

The approval of a Dogecoin Spot ETF would mark a watershed moment for meme cryptocurrencies, offering regulated access to Dogecoin’s price movements and potentially stabilizing its volatile market through institutional investments. While initial price surges and subsequent corrections highlight speculative risks, long-term benefits would likely include enhanced liquidity, legitimacy and broader investor adoption. This precedent could pave the way for altcoins like Shiba Inu to pursue similar ETFs, though regulatory hurdles and market maturity remain critical barriers. 

Ultimately, a Dogecoin Spot ETF would bridge meme-driven crypto culture with traditional finance, providing the much-beloved dog-themed Dogecoin with a previously unattainable level of credibility.

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Dogecoin Spot ETF: A giant leap for Dogecoin's legitimacy

In this tutorial, we’ll explore how you can complete a series of tasks in Prosper for Bybit Web3 Airdrop Arcade.

In this tutorial, we’ll explore how you can complete a series of tasks in Prosper for 

Task: Stake at least 20 PROS on the Prosper DApp on BSC

 and connect your Bybit Wallet by clicking on the 

button at the top-right corner of the page and selecting 

: Type in the amount of PROS tokens you would like to stake. You’ll need to stake at least 20 PROS tokens to complete this task.

If you notice the available amount shown for the connected wallet is incorrect or unexpected, simply click on the “refresh” icon to update your token balance. Also, please ensure that you’re connected to the BNB Smart Chain (BSC) network.

 to approve both the application permissions and the stake amount via your Bybit Wallet. 

Once both interactions have been completed, you’ll have successfully staked PROS!

: You’ll be prompted to add rePROS (receipt for staked PROS) to your Bybit Wallet (for display purposes) after you finish staking. These tokens effectively serve as a receipt for your staked PROS.

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How to complete Prosper tasks for Bybit Web3 Airdrop Arcade

Bybit Learn

Investing

Liquid staking has emerged as a revolutionary solution that combines the benefits of staking with the flexibility and liquidity of decentralized finance (DeFi)

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In the ever-evolving world of cryptocurrencies, liquid staking has emerged as a revolutionary solution that combines the benefits of staking with the flexibility and liquidity of 

 (DeFi). But what exactly is liquid staking, and how does it differ from traditional staking methods? In this post, we delve into the world of liquid staking, its mechanisms, advantages, potential risks, and popular protocols and use cases.

Liquid staking presents a method for users to stake tokens in 

 (PoS) blockchains, all while preserving liquidity and flexibility, presenting a superior alternative to traditional staking techniques. With the issuance of liquid staking derivatives, such as Liquid Staking Tokens (LSTs), users receive a receipt for their staked tokens, which can then be used in various DeFi protocols and blockchain applications, representing the staked tokens and providing additional benefits for the user.

The most noteworthy advantage of liquid staking is the heightened liquidity it provides, affording users immediate access to their funds without the need to wait for lockup periods to conclude. This flexibility allows users to participate in other DeFi protocols, potentially maximizing their rewards and making their assets work harder for them.

 users lock up their assets in a smart contract, securing the blockchain network and earning rewards for doing so. However, this method has its limitations, as the staked assets are often locked up for a fixed period, limiting the user’s ability to:

This lack of flexibility can be a barrier for users who want to actively manage their assets and participate in the dynamic DeFi ecosystem.

Contrarily, liquid staking provides tokenized representations of staked assets, allowing users to employ them across a range of DeFi protocols and still accrue rewards from the staking operation. This added liquidity and flexibility make liquid staking an attractive option for users who want to maximize their investment potential and take full advantage of the opportunities that DeFi provides.

Liquid staking can be broken down into three phases: staking the asset, issuing 

 (LSTs), and unstaking the asset. The process begins with users depositing their tokens on a 

 platform, which verifies and securely stores them in a smart contract. At this point, the staked assets are locked up and used to secure the underlying blockchain network, just like in traditional staking.

The second phase involves the issuance of LSTs as a receipt for the staked assets. These LSTs can be traded, swapped, or used as collateral in DeFi protocols, representing the staked tokens and providing liquidity and flexibility to the user.

Eventually, when users choose to unstake their assets, they extinguish the LSTs to regain their unstaked coins.

When users deposit their tokens on a liquid staking platform, the platform performs the following steps:

Once the assets are staked, the liquid staking platform issues Liquid Staking Tokens (LSTs) to represent the staked assets. These LSTs can be traded, swapped, or utilized as collateral in DeFi protocols, providing liquidity and flexibility to the user while maintaining a connection to the staked assets.

This grants users the ability to engage in diverse DeFi activities and possibly boost their returns, concurrently earning staking rewards from the underlying 

LSTs enable users to engage in DeFi activities, like 

 and lending, while still obtaining staking rewards. This composability of LSTs with other DeFi protocols allows users to maximize their investment potential, taking full advantage of the rapidly changing DeFi landscape, and potentially earning higher returns than with 

One of the standout benefits of liquid staking is the instant liquidity it delivers. Unlike traditional staking, where assets are locked up for a fixed period, liquid staking allows users to access their staked assets at any time through the use of LSTs. This flexibility enables users to participate in other DeFi protocols and investment opportunities, maximizing their investment potential and making their assets work harder for them.

Another advantage of liquid staking is its composability with DeFi protocols. LSTs can be used as collateral on both centralized and decentralized exchanges or lending pools, enabling users to participate in yield farming and lending activities while still earning staking rewards. This composability allows users to take full advantage of the opportunities that DeFi provides, potentially increasing their returns without additional investment.

Liquid staking further levels the playing field in the staking process, improving accessibility for users with smaller stakes. As a liquid staking provider, traditional staking often requires a larger stake and can be more complex to set up, while decentralized liquid staking allows users to stake as little or as much as they want and still use the tokenized assets in DeFi protocols. This accessibility makes it easier for users to participate in the staking process and benefit from the rewards it offers, contributing to the growth of the liquid staking market. As a result, liquid staking platforms are becoming increasingly popular among cryptocurrency enthusiasts, with many seeking out reliable liquid staking services to make their liquid staking work effectively.

Regardless of its manifold benefits, liquid staking carries its share of risks and possible disadvantages, making liquid staking risky for some investors. One significant risk is the potential for smart contract exploits, which could result in the theft or loss of the backing of the liquid staking token. Ensuring the security of the smart contract is crucial to the success of liquid staking, but the possibility of vulnerabilities still exists.

Price volatility of LSTs is another potential drawback of liquid staking. As LSTs are traded on the open market, their value can fluctuate independently of the underlying staked asset, potentially leading to losses for users if the LST’s value declines. This price volatility adds an element of market risk to the liquid staking process, which users should be aware of and factor into their investment decisions.

Moreover, liquid staking usually imposes higher fees compared to other staking techniques, attributed to the increased complexity of the procedure and the necessity to sustain the liquid staking platform. These fees may cut into the potential rewards earned by users, making liquid staking a potentially less attractive option for those who are more fee-conscious.

Numerous liquid staking protocols have risen to prominence in the cryptocurrency arena, with each providing services for a variety of assets like ETH, MATIC, and SOL. Among these protocols are Lido, 

, and Stakewise, which have become widely utilized for their user-friendly interfaces and robust feature sets.

, for example, is a liquid staking protocol that was launched in 2020 and offers a 10% fee for its services. It supports ecosystems such as:

This provides users with numerous options for staking their assets and earning rewards.

 protocol that offers the following features:

Liquid staking holds a pivotal role in the DeFi ecosystem, especially in relation to yield farming activities. By utilizing LSTs, users can:

One notable example of a liquid staking protocol that enables users to participate in yield farming is Tempus Finance. This protocol allows users to gain a fixed income on their tokens while supporting the majority of reward-giving tokens on the Ethereum and Fantom blockchains, such as:

By utilizing Tempus Finance, users can maximize their returns by taking advantage of the various DeFi opportunities offered by the platform.

Another practical use of liquid staking is the potential to leverage staked crypto assets on platforms akin to Hubble Protocol. Users can obtain up to 11x leverage on collateral, enabling them to make the most of their existing crypto assets and gain access to additional investment opportunities or cover unforeseen expenses.

Liquid staking has emerged as a game-changing solution in the cryptocurrency and DeFi space, combining the benefits of staking with the flexibility and liquidity of DeFi protocols. By utilizing LSTs, users can maintain access to their staked assets while earning rewards and participating in various DeFi strategies, maximizing their investment potential and making the most of their assets.

However, liquid staking is not without its risks and potential drawbacks, such as smart contract vulnerabilities, price volatility of LSTs, and higher fees compared to traditional staking methods. As such, users should carefully consider these factors when deciding whether to engage in liquid staking and choose a reputable protocol that aligns with their investment strategy and risk tolerance.

Liquid staking offers a number of advantages, including the ability to earn staking rewards without sacrificing liquidity, and increased rewards due to the ability to use tokens for other purposes, such as collateral for loans or trading on other platforms.

Liquid staking can be risky, depending on the platform and smart contract used. It is important to choose reputable liquidity providers and cross-check any contracts before signing them.

Liquid staking is a software solution that enables users to stake crypto assets on a proof of stake (PoS) network, receive a liquid staking token (LST) and access liquidity while earning rewards. With liquid staking, users can access their locked funds for other crypto-based activities.

What is the difference between traditional staking and liquid staking?

Traditional staking requires locking up of assets for extended periods, while liquid staking provides stakers with increased liquidity and capital efficiency through the use of receipt tokens and the ability to buy/sell on centralized or decentralized exchanges.

Liquid staking offers the benefit of unlocking assets while also providing increased rewards. However, there is a risk of token de-pegging associated with it. Overall, liquid staking can be worth it if you're comfortable with the risks involved.

What Is Liquid Staking & How Does It Work?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards