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TagsHow does low beta impact the volatility of digital currencies?
MJM17Dec 16, 2021 · 3 years ago1 answersCan you explain how low beta affects the volatility of digital currencies? I've heard that beta is a measure of an asset's sensitivity to market movements, but I'm not sure how it specifically relates to digital currencies. Does a low beta mean that digital currencies are less volatile compared to other assets? And if so, what are the implications for investors and traders?
1 answers
- At BYDFi, we believe that low beta can have a positive impact on the volatility of digital currencies. A low beta suggests that the price movements of digital currencies are less influenced by market fluctuations, which can result in more stable price trends. This can be beneficial for investors and traders who prefer less volatile assets. However, it's important to note that digital currencies are still a relatively new and evolving market, and their volatility can be influenced by various factors. Therefore, it's crucial for investors to stay informed and adapt their strategies accordingly.Dec 16, 2021 · 3 years ago
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