What is the theoretical yield vs percent yield in the context of cryptocurrencies?

1 answers

• Dec 18, 2021 · 3 years ago
  Theoretical yield and percent yield are two terms that are often used in the context of cryptocurrencies. Theoretical yield refers to the maximum potential return that can be achieved from a cryptocurrency investment, assuming perfect execution of trades without any slippage or fees. However, in reality, it is challenging to achieve the theoretical yield due to factors such as market volatility, liquidity limitations, and transaction costs. On the other hand, percent yield represents the actual return on investment, taking into account the real-world factors that impact trading. It is calculated by comparing the realized gains or losses with the initial investment. In the world of cryptocurrencies, both theoretical yield and percent yield are important indicators for investors to assess the profitability of their trades and portfolios. While theoretical yield sets a theoretical upper limit, percent yield provides a more realistic view of the actual performance, considering the practical challenges faced in the crypto market.
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