Is the irr formula applicable to calculating returns on cryptocurrency investments?

1 answers

• Dec 30, 2021 · 3 years ago
  As an expert in both finance and cryptocurrencies, I can say that the irr formula can be used to calculate returns on cryptocurrency investments, but it may not be the most suitable method. Cryptocurrencies are unique assets with their own characteristics and risks. The irr formula is based on certain assumptions that may not hold true for cryptocurrencies, such as constant cash flows and a predictable rate of return. Therefore, it's important to consider other factors and metrics when evaluating cryptocurrency investments, such as market trends, technological developments, and the overall risk appetite of the investor. Each investment requires a tailored approach, and it's always recommended to consult with a financial advisor who specializes in cryptocurrencies for personalized advice.
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