We dive into Modern Portfolio Theory and the Sharpe Ratio (risk-adjusted returns) to investigate the optimal portfolio. We discuss how taking on various levels of risk when it comes to Bitcoin and Ethereum can theoretically yield different returns, but it also will adjust your risk or volatility exposure. We also add in Litecoin at the end to see how it stacks up compared to Bitcoin and Ethereum and if we can be justified in holding it for years simply based on its historical returns and historical volatility. TA Video by Benjamin Cowen.
Practice trading Bitcoin and altcoins like XRP, Ethereum, Litecoin, NEO, Dash, IOTA, Monero, EOS, Tron, ZCash, etc. as long as necessary. Try Free Demo >>
