@BOMBERuss 17 April 2022 more from that month

Technical analysis suggests that investing in the #Ethereum (ETH) cryptocurrency carries fewer risks than buying bitcoins. Employees of the analytical company Into The Black calculated the Sharpe and Sortino coefficients for #ETH and bitcoin, as well as shares of companies whose activities are related to cryptocurrencies: Square, MicroStrategy and Coinbase. The positive value of the coefficients was recorded only for Ethereum. This fact suggests that Ethereum is a more effective investment tool than #bitcoin and securities of these firms. The Sharp coefficient of 0.4 means that #investing in ETH will bring more income than opening a bank deposit, but the excess risks of investing in Ethereum exceed the excess profitability. And the indicator of the Sharpe coefficient of 0.6 indicates that the ratio between profitability and risks is at a level below optimal. Negative values of the coefficients indicate that the potential risks outweigh the amount of possible income, therefore, in the long term, the investor is highly likely to suffer losses. The difference in coefficients is confirmed in practice, for example, people who bought bitcoins a year ago note a loss of Z6%, and those who invested money in ETH made a profit of 21%.