Contrary to popular belief, bitcoin and ethereum are less volatile than some stocks
The volatility of the Bitcoin market is used as an argument against the digital asset because it brings more risky investors to Bitcoin. Therefore, it should be avoided. However, the two most popular cryptocurrencies, bitcoin and ethereum, are less volatile and offer higher returns than some stocks, according to the latest data from IntoTheBlock.
Analysts at IntoTheBlock have developed an automated tool for calculating the Sharpe ratio, a metric that helps investors weigh risk and reward. The ratio is determined based on the historical performance of a portfolio. A high risk/reward ratio is often viewed as a positive indicator of risk/reward allocation.
According to research provided by the firm's analysts, Bitcoin is less volatile than many stocks, especially compared to stocks of crypto-related companies such as Coinbase, and Ether and Ether.