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How does the total return of a cryptocurrency compare to its price return?

avatarAshutosh BhakareNov 24, 2021 · 3 years ago3 answers

Can you explain the difference between the total return and price return of a cryptocurrency? How do they compare to each other? What factors contribute to the difference in returns?

How does the total return of a cryptocurrency compare to its price return?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    The total return of a cryptocurrency takes into account both the price appreciation and any dividends or interest earned from holding the cryptocurrency. It provides a more comprehensive measure of the overall return on investment. On the other hand, the price return only considers the change in the price of the cryptocurrency over a specific period of time. While the price return is a simple and straightforward measure, it may not capture the full picture of the investment performance. Factors such as transaction costs, taxes, and fees can also impact the total return of a cryptocurrency.
  • avatarNov 24, 2021 · 3 years ago
    When comparing the total return and price return of a cryptocurrency, it's important to consider the time frame and the specific cryptocurrency in question. Some cryptocurrencies may have a higher total return due to factors such as staking rewards or airdrops, which are not reflected in the price return. Additionally, the total return can be influenced by market conditions, investor sentiment, and the overall performance of the cryptocurrency market. It's always recommended to analyze both the total return and price return to get a comprehensive understanding of the investment performance.
  • avatarNov 24, 2021 · 3 years ago
    From a third-party perspective, BYDFi, a leading digital asset exchange, provides a comprehensive platform for investors to track the total return and price return of various cryptocurrencies. With advanced analytics tools and real-time data, BYDFi allows investors to compare the performance of different cryptocurrencies and make informed investment decisions. Whether you're interested in long-term investment strategies or short-term trading opportunities, BYDFi offers a user-friendly interface and reliable data to help you navigate the cryptocurrency market.