What are the financial ratios used to evaluate the performance of digital currency investments?

1 answers

• Dec 29, 2021 · 3 years ago
  Well, evaluating the performance of digital currency investments requires considering a range of financial ratios. The return on investment (ROI) is a key ratio that measures the profitability of an investment. The Sharpe ratio is another important metric that assesses the risk-adjusted return. Additionally, the volatility ratio helps gauge the price fluctuations of a digital currency. The liquidity ratio is also crucial as it indicates the ease of buying or selling a digital currency. Lastly, the market capitalization ratio provides insights into the size and value of a digital currency. By analyzing these ratios, investors can make more informed decisions and evaluate the performance of their digital currency investments effectively.
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