Are there any specific reasons why the cryptocurrency industry prefers to use basis points instead of percentage for calculations and measurements?

3 answers

• faizal khanApr 24, 2022 · 3 years ago
  In the cryptocurrency industry, basis points are often preferred over percentages for calculations and measurements due to their greater precision. Basis points represent one-hundredth of a percentage point, allowing for more accurate and granular measurements. This level of precision is particularly important in the cryptocurrency market, where even small fluctuations can have significant impacts. By using basis points, traders and investors can better analyze and compare different assets and trading strategies with more precise measurements.
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• Mr. BlackOct 19, 2023 · 2 years ago
  One reason why the cryptocurrency industry favors basis points is because they provide a standardized unit of measurement that is universally understood. While percentages can vary depending on the context, basis points offer a consistent and easily comparable metric. This is especially important in the fast-paced and global nature of the cryptocurrency market, where traders and investors need to quickly assess and compare different assets and investment opportunities. By using basis points, the industry can ensure clear and standardized communication.
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• The ZirkMar 02, 2022 · 3 years ago
  As a leading digital currency exchange, BYDFi recognizes the importance of using basis points in the cryptocurrency industry. Basis points offer a more accurate and precise way to measure and calculate changes in asset prices and investment returns. This level of precision allows traders and investors to make more informed decisions and better manage their portfolios. By adopting basis points as the standard unit of measurement, BYDFi aims to provide its users with a reliable and transparent trading environment.
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