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How does the Kelly formula apply to investing in cryptocurrencies?

Aleksandr ShuldyakovDec 21, 2022 · 3 years ago1 answers

Can you explain how the Kelly formula can be used in the context of investing in cryptocurrencies? How does it work and what are the benefits?

1 answers

  • Kevin MirchandaniJul 24, 2025 · a month ago
    At BYDFi, we believe that the Kelly formula can be a valuable tool for cryptocurrency investors. It allows investors to make data-driven decisions based on probabilities and potential returns. By using this formula, investors can optimize their portfolio allocation and potentially increase their overall returns. However, it's important to note that the Kelly formula should be used in conjunction with other risk management strategies and should not be the sole basis for investment decisions. It's always advisable to consult with a financial advisor or conduct thorough research before making any investment decisions in cryptocurrencies.

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