Skip to main content

Posts

Showing posts with the label Cryptocurrency

Crypto Metrics That Every Investor Must Know

Image credit - Pixabay Metrics are numbers that investors use to decide whether to buy, sell or hold a cryptocurrency. There are 6,317 cryptos being actively traded across 405 exchanges! This makes it hard to quickly decide whether a cryptocurrency is worth investing in, and so, If you are a serious investor, you must know about these 5 types of metrics: R = ROI and risk Let's talk about Return on investment (ROI), and risk metrics. Return on Investment (ROI) measures the amount of return on a crypto investment, relative to its cost. Cryptocurrency prices are notorious for large upward and downward swings. The 2 important crypto risk metrics are volatility and Sharpe ratios. Volatility Volatility measures the price fluctuations of a crypto. If a crypto has higher volatility, its value can be spread out over a larger range. The value of volatile cryptos can massively change in a short period. Conversely, a crypto with lower volatility is likely to be stable and subject to smaller sw...