What factors contribute to the calculation of total return for cryptocurrencies?

1 answers

• May 01, 2022 · 3 years ago
  When it comes to calculating the total return for cryptocurrencies, there are several factors to take into account. One of the main factors is the price volatility of the cryptocurrency. Cryptocurrencies are known for their wild price swings, which can greatly impact the total return. Transaction fees also play a role in the calculation. Higher fees can eat into the overall return, so it's important to consider the cost of buying, selling, and trading cryptocurrencies. The holding period is another important factor. The longer you hold a cryptocurrency, the higher the potential for total return. Finally, external factors such as market sentiment and regulatory changes can also influence the total return of cryptocurrencies. It's important to stay informed about the latest news and developments in the crypto space to make informed investment decisions.
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