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Which metric, total return or price return, is more important for evaluating the performance of a cryptocurrency?

avatarGK IT SOLUTIONMar 22, 2022 · 3 years ago1 answers

When evaluating the performance of a cryptocurrency, which metric holds more significance: total return or price return? How do these metrics differ and how do they impact the overall evaluation of a cryptocurrency's performance?

Which metric, total return or price return, is more important for evaluating the performance of a cryptocurrency?

1 answers

  • avatarMar 22, 2022 · 3 years ago
    When evaluating the performance of a cryptocurrency, it is important to consider both total return and price return. Total return takes into account the price appreciation as well as any dividends or distributions received from the cryptocurrency. This provides a more comprehensive measure of the overall return on investment. Price return, on the other hand, only considers the change in the price of the cryptocurrency over a specific period of time. While price return can give a quick overview of the price movement, it does not provide a complete picture of the cryptocurrency's performance. Therefore, total return is generally considered to be a more important metric for evaluating the performance of a cryptocurrency.