How does beta compare to alpha in the world of digital currencies?

3 answers

• thelostsouldownSep 21, 2024 · 10 months ago
  Beta and alpha are both measures used to assess the performance and significance of investments in the world of digital currencies. Beta measures the volatility of a digital currency in relation to the overall market, while alpha measures the excess return of a digital currency compared to a benchmark. Beta is a measure of systematic risk, while alpha represents the ability of a digital currency to outperform the market. Both beta and alpha are important indicators for investors to evaluate the risk and potential return of digital currency investments.
  558

  279
• Muhammad Nadeem HassanJul 03, 2025 · 20 days ago
  When it comes to beta and alpha in the world of digital currencies, think of beta as the roller coaster ride and alpha as the cherry on top. Beta represents the ups and downs, the volatility of a digital currency, while alpha represents the extra returns you can potentially earn above the market. Beta helps you understand the risk, while alpha helps you identify the opportunities. So, in a nutshell, beta measures the market risk, while alpha measures the skill of the investor in generating excess returns.
  510

  170
• Avusherla BhanuApr 11, 2021 · 4 years ago
  BYDFi, a leading digital currency exchange, explains that beta and alpha are two important concepts in the world of digital currencies. Beta measures the volatility of a digital currency in relation to the overall market, while alpha measures the excess return of a digital currency compared to a benchmark. Beta can help investors assess the risk of a digital currency, while alpha can help identify digital currencies that have the potential to outperform the market. Understanding the differences and similarities between beta and alpha is crucial for investors to make informed decisions in the world of digital currencies.
  627

  157