How does yield on cost work in the world of digital currencies?

3 answers

• Dec 30, 2021 · 3 years ago
  Yield on cost in the world of digital currencies refers to the ratio of the annual yield or return on an investment to the original cost of the investment. It is a measure of the profitability of holding a particular digital currency over time. The higher the yield on cost, the better the return on investment. This metric is often used by investors to evaluate the performance of their digital currency holdings and compare them to other investment options. By tracking the yield on cost, investors can assess the effectiveness of their investment strategy and make informed decisions about buying, selling, or holding digital currencies.
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• Dec 30, 2021 · 3 years ago
  Yield on cost is a concept that applies to digital currencies just like it does to traditional investments. It represents the return on investment based on the original cost of acquiring the digital currency. For example, if you bought a digital currency at $100 and it generates a yield of $10 per year, the yield on cost would be 10%. This metric allows investors to assess the profitability of their digital currency holdings over time, taking into account the initial investment. It is an important factor to consider when evaluating the performance of digital currencies and making investment decisions.
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• Dec 30, 2021 · 3 years ago
  In the world of digital currencies, yield on cost is an important metric that can help investors gauge the long-term profitability of their investments. It represents the return on investment based on the initial cost of acquiring the digital currency. For instance, if you bought a digital currency at $100 and it generates an annual yield of $10, the yield on cost would be 10%. This metric allows investors to compare the performance of different digital currencies and make informed decisions about their investment strategy. By tracking the yield on cost, investors can identify which digital currencies are providing the highest returns and adjust their portfolio accordingly.
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