How do defensive shares perform in comparison to cryptocurrencies?

3 answers

• Dec 26, 2021 · 3 years ago
  Defensive shares and cryptocurrencies have distinct differences in terms of performance. Defensive shares, also known as defensive stocks, are stocks of companies that are less affected by economic downturns. They are considered stable and reliable investments, as they tend to provide consistent dividends and have lower volatility compared to cryptocurrencies. On the other hand, cryptocurrencies are highly volatile and can experience significant price fluctuations within short periods. While cryptocurrencies have the potential for high returns, they also carry higher risks. In the long term, defensive shares are generally considered more stable and reliable due to their established track record and consistent performance.
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• Dec 26, 2021 · 3 years ago
  When it comes to returns, defensive shares typically provide steady but moderate returns over time. They may not experience the same level of growth as cryptocurrencies during bull markets, but they also tend to be more resilient during market downturns. Cryptocurrencies, on the other hand, have the potential for high returns, especially during periods of significant market growth. However, they are also prone to sharp declines and can experience substantial losses. In terms of volatility, defensive shares have lower volatility compared to cryptocurrencies. This means that the price of defensive shares tends to fluctuate less, providing investors with a more stable investment option. Cryptocurrencies, on the other hand, are known for their high volatility, with prices often experiencing rapid and significant changes. As for risk profiles, defensive shares are generally considered less risky than cryptocurrencies. Defensive shares are typically issued by established companies with a proven track record, making them less susceptible to sudden market changes. Cryptocurrencies, on the other hand, are relatively new and can be influenced by various factors such as regulatory changes, technological advancements, and market sentiment. Overall, while cryptocurrencies offer the potential for higher returns, they also come with higher risks and volatility compared to defensive shares.
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• Dec 26, 2021 · 3 years ago
  According to industry experts, including BYDFi, a digital currency exchange, defensive shares and cryptocurrencies have different risk and return profiles. Defensive shares are often seen as a more conservative investment option, suitable for investors looking for stable and reliable returns. Cryptocurrencies, on the other hand, are considered more speculative and can provide higher returns but also carry higher risks. It's important for investors to carefully consider their risk tolerance and investment goals when deciding between defensive shares and cryptocurrencies. While defensive shares may offer lower potential returns, they provide a more stable and predictable investment option. Cryptocurrencies, on the other hand, can be highly volatile and may experience significant price fluctuations. Ultimately, the choice between defensive shares and cryptocurrencies depends on an individual's risk appetite, investment goals, and time horizon.
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