Which one is more relevant for cryptocurrency traders, VXX or VIX?

3 answers

• Nov 27, 2021 · 3 years ago
  As a cryptocurrency trader, it's important to understand the differences between VXX and VIX. VXX is an exchange-traded note (ETN) that tracks the short-term volatility of the S&P 500 index. On the other hand, VIX is a volatility index that measures the market's expectation of future volatility. While both VXX and VIX can provide insights into market sentiment, VIX is often considered a more accurate indicator of overall market volatility. Therefore, as a cryptocurrency trader, keeping an eye on VIX can help you gauge the overall market sentiment and make informed trading decisions.
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• Nov 27, 2021 · 3 years ago
  When it comes to cryptocurrency trading, VIX is more relevant than VXX. VIX measures the expected volatility of the market, which can directly impact cryptocurrency prices. As cryptocurrencies are known for their high volatility, monitoring VIX can give you a better understanding of the overall market sentiment and help you make more informed trading decisions. On the other hand, VXX tracks the short-term volatility of the S&P 500 index, which may not directly reflect the volatility of cryptocurrencies. Therefore, focusing on VIX would be more beneficial for cryptocurrency traders.
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• Nov 27, 2021 · 3 years ago
  As a cryptocurrency trader, you should pay attention to VIX rather than VXX. VIX is a widely used volatility index that reflects market expectations of future volatility. Cryptocurrencies are highly volatile assets, and changes in market sentiment can have a significant impact on their prices. By monitoring VIX, you can gain insights into the overall market sentiment and make better trading decisions. However, it's important to note that VIX is not specific to cryptocurrencies and also reflects volatility in traditional markets. Therefore, it should be used as a supplementary tool alongside other cryptocurrency-specific indicators.
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