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TagsHow does delta impact cryptocurrency prices?
AleynaDec 16, 2021 · 3 years ago1 answersCan you explain how the concept of delta affects the prices of cryptocurrencies? I've heard it mentioned before but I'm not sure how it works.
1 answers
- Delta plays a significant role in the cryptocurrency market. It measures the sensitivity of a cryptocurrency's price to changes in the price of another asset. For example, if the delta of a cryptocurrency is 0.8, it means that for every 1% increase in the price of the other asset, the price of the cryptocurrency is expected to increase by 0.8%. This can have a substantial impact on the overall price of the cryptocurrency. Traders use delta to assess the risk and potential reward of investing in a particular cryptocurrency. It helps them understand how closely the price of the cryptocurrency is tied to the price of other assets, and whether it's a good investment opportunity. Keep in mind that delta is just one piece of the puzzle, and there are many other factors that can influence cryptocurrency prices.Dec 16, 2021 · 3 years ago
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