Research Report | The average return of cryptocurrencies in 2019 is far less than that of traditional financial markets, and the risk is more than 5 times that of traditional financial markets

Source: gate.io

Editor's Note: The original title was "2019 Cryptocurrency Revenue Survey and Investment Strategy Analysis Report"

A year of enthusiastic development of the cryptocurrency industry in 2019, the development of the industry throughout the year is also extremely valuable for the development trend of 2020. Among them, the overall profitability of cryptocurrencies in 2019 will promote the overall development trend in 2020, and the profitability is also the concern of the majority of users. This article will investigate the top 200 digital currencies by market capitalization and use traditional financial methods to calculate their returns and risks. Given that the benefits of different types of projects may be different, the benefits and risks will be studied by type below. In order to better compare with the traditional financial market, this article chooses the Shanghai Stock Index and Dow Jones Index instead of the average level of A shares and US stocks, and adds price analysis of gold and oil prices. By using the fixed investment and average position strategies commonly used by ordinary users, the investment returns of ordinary investors in traditional financial markets and digital currencies are simulated, and the simulation results are observed.

Summary of the main points of this article:

-According to the survey results, the average return of cryptocurrencies in 2019 is far worse than that of traditional financial markets, and the risk is more than 5 times that of traditional financial markets; Large, the risk is slightly higher than the underlying facilities and general technology projects. -Through the simulation investment strategy, it was found that the fixed investment strategy can reduce the user's position management time and allow the user's income to fluctuate in parallel with the market. The average position strategy can effectively reduce the risk, but the return will be halved and the time spent on position management will be more;-In the traditional financial market in 2019, gold, U.S. stocks and oil perform poorly in the average position strategy, And the average position strategy is not suitable for gold with lower volatility. -Through the simulation of bitcoin's investment strategy, the risk and return are the highest in the comparison of the average position strategy and the fixed investment strategy. Digital currency may be more suitable for active investors, and traditional finance is more suitable for stable investors.

Disclaimer: This report only conducts research based on market objective data. The quoted data has been endeavored to be accurate and rigorous, but it cannot be guaranteed to be 100% accurate and cannot be used as a personal investment reference.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

BC Technology Group Considers Selling OSL: The Crypto Exchange that Moos Money

Fashionista may be interested to know that BC Technology is in talks with potential buyers regarding a potential sale...

Blockchain

Midas: When Traditional Finance Meets Crypto

Fashionista, get ready for the latest in fashion and finance! The Midas stablecoin is making waves in the DeFi world ...

Market

The Great ETF Migration: JPMorgan Predicts Massive Shift in Crypto Capital

JPMorgan anticipates a significant shift in funds from GBTC to spot Bitcoin ETFs, as investors seek out more cost-eff...

Blockchain

Coinbase Caught in a Regulatory Tangle: Will They Sink or Swim?

Coinbase has recently warned some users that the CFTC subpoenaed them for information about Bybit.

Market

MicroStrategy: Riding the Bitcoin Wave to New Heights

Fashionista should take note that MicroStrategy's shares have grown by an impressive 246% this year, largely thanks t...