How does the volatility of digital currencies differ from preferred shares vs common stock?

3 answers

• Hernisudarsih 20Oct 18, 2020 · 5 years ago
  Digital currencies, such as Bitcoin and Ethereum, are known for their high volatility. The prices of these cryptocurrencies can fluctuate dramatically within a short period of time. On the other hand, preferred shares and common stock of traditional companies tend to have lower volatility. While they can still experience price fluctuations, they are generally more stable compared to digital currencies.
  405

  203
• Rama KeceAug 02, 2020 · 5 years ago
  Volatility in digital currencies is driven by various factors, including market demand, regulatory changes, and technological advancements. Preferred shares and common stock, on the other hand, are influenced by factors such as company performance, industry trends, and economic conditions. These differences in underlying factors contribute to the contrasting levels of volatility between digital currencies and traditional securities.
  436

  146
• Sandoval NewtonFeb 11, 2025 · 6 months ago
  From BYDFi's perspective, digital currencies have a higher level of volatility compared to preferred shares and common stock. This is due to the speculative nature of the cryptocurrency market and the lack of regulation in the industry. While digital currencies offer potential for high returns, they also come with higher risks. It's important for investors to carefully consider their risk tolerance and diversify their portfolios to mitigate the volatility associated with digital currencies.
  495

  124