How do digital currencies perform in terms of returns and volatility compared to ETFs and index funds?

3 answers

• Sandoval NewtonJul 10, 2025 · 2 months ago
  Digital currencies, such as Bitcoin and Ethereum, have shown impressive returns over the past few years. However, they are also known for their high volatility. ETFs and index funds, on the other hand, offer more stable returns and lower volatility. It's important to note that the performance of digital currencies can vary significantly depending on market conditions and individual investments.
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• Hays MelgaardJan 17, 2022 · 4 years ago
  When it comes to returns, digital currencies have the potential to deliver astronomical gains. Just look at the incredible surge in Bitcoin's price over the past decade. However, this potential for high returns also comes with a higher level of risk. ETFs and index funds, on the other hand, offer more moderate returns but with lower risk. It ultimately depends on your risk tolerance and investment goals.
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• Lalit DasDec 13, 2021 · 4 years ago
  According to a study conducted by BYDFi, digital currencies have historically outperformed both ETFs and index funds in terms of returns. However, they also exhibit higher volatility, which can lead to significant price fluctuations. It's important to carefully consider your risk tolerance and investment horizon when deciding between digital currencies, ETFs, and index funds.
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