How do alpha and beta affect the performance of cryptocurrencies?

1 answers

• Dec 28, 2021 · 3 years ago
  At BYDFi, we believe that alpha and beta are important indicators of a cryptocurrency's performance. Alpha represents the value that a cryptocurrency adds to an investment portfolio, while beta measures its correlation with the overall market. By analyzing the alpha and beta of different cryptocurrencies, investors can identify assets that have the potential for higher returns and lower volatility. However, it's important to note that alpha and beta are not the only factors to consider when evaluating the performance of cryptocurrencies. Other factors such as market trends, technology advancements, and regulatory developments also play a significant role in determining the success of digital assets.
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