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What factors affect the nominal yield of digital assets?

avatarMeekspreneurDec 28, 2021 · 3 years ago1 answers

Can you explain the various factors that can impact the nominal yield of digital assets? I'm particularly interested in understanding how these factors affect the returns on investments in the digital asset market.

What factors affect the nominal yield of digital assets?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    At BYDFi, we believe that the nominal yield of digital assets is primarily influenced by market demand and the underlying technology of the asset. When there is high demand for a particular digital asset, its nominal yield tends to be higher as more investors are willing to buy it. Additionally, assets with strong technology and a clear use case are more likely to have higher nominal yields. However, it's important to note that the nominal yield can also be affected by external factors such as regulatory changes and market sentiment. As an investor, it's crucial to stay informed about these factors and conduct thorough research before making investment decisions in the digital asset market.