Why is delta important for investors in the cryptocurrency market?

1 answers

• Nov 27, 2021 · 3 years ago
  In the cryptocurrency market, delta plays a significant role for investors. Delta measures the rate of change in the price of a cryptocurrency relative to changes in the price of its underlying asset. This information is crucial for investors as it helps them assess the potential profitability and risk associated with a particular cryptocurrency. A high delta indicates that the price of the cryptocurrency is highly influenced by the price of its underlying asset, making it a more volatile investment. On the other hand, a low delta suggests that the price of the cryptocurrency is less affected by the underlying asset, indicating a more stable investment option. Therefore, investors use delta as a tool to make informed decisions and manage their investment portfolios in the cryptocurrency market.
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