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What is the net liquidation value of a cryptocurrency portfolio?

avatarAjayi SeyiNov 28, 2021 · 3 years ago1 answers

Can you explain what the net liquidation value of a cryptocurrency portfolio is and how it is calculated? How does it differ from the total value of the portfolio? What factors can affect the net liquidation value?

What is the net liquidation value of a cryptocurrency portfolio?

1 answers

  • avatarNov 28, 2021 · 3 years ago
    The net liquidation value of a cryptocurrency portfolio is a key metric that investors use to assess the value and risk of their holdings. It represents the total value of the portfolio after deducting any outstanding debts or liabilities. This value is important because it gives investors a realistic view of what their portfolio is worth in a liquidation scenario. For example, if an investor needs to sell all their assets to pay off their debts, the net liquidation value is the amount they would have left after doing so. It takes into account factors such as market prices, borrowed funds, and fees. At BYDFi, we provide our users with real-time updates on their net liquidation value, helping them make informed investment decisions.