What are the advantages and disadvantages of using points vs basis points in cryptocurrency investment?

3 answers

• Mohamed RafsiApr 21, 2024 · 2 years ago
  Points and basis points are both commonly used in the world of cryptocurrency investment. Points are a way to measure the price movement of a cryptocurrency, with one point representing a one percent change. Basis points, on the other hand, are used to measure smaller price movements, with one basis point representing a one hundredth of a percent change. The advantage of using points is that they provide a larger scale for measuring price movements, making it easier to identify significant changes. However, the disadvantage is that points may not be as precise for measuring smaller price movements. On the other hand, basis points offer a more precise measurement for smaller price movements, but they may not provide the same level of granularity for larger price movements. Ultimately, the choice between points and basis points depends on the investor's preference and the specific cryptocurrency being traded.
  920

  460
• KOSMOS1Feb 11, 2021 · 5 years ago
  When it comes to investing in cryptocurrencies, the choice between using points or basis points can have an impact on your strategy. Points are a more common and widely used measurement, as they represent a one percent change in price. This makes it easier to quickly gauge the magnitude of price movements. However, basis points offer a more precise measurement, representing a one hundredth of a percent change. This can be useful for investors who are looking to analyze smaller price movements in more detail. The disadvantage of using basis points is that they may not provide the same level of granularity for larger price movements. Ultimately, the decision between points and basis points depends on the investor's trading style and the specific cryptocurrency being traded.
  782

  261
• Pradip PatelSep 19, 2022 · 3 years ago
  In the world of cryptocurrency investment, points and basis points are two commonly used measurements for tracking price movements. Points represent a one percent change in price, while basis points represent a one hundredth of a percent change. The advantage of using points is that they provide a larger scale for measuring price movements, making it easier to identify significant changes. However, points may not be as precise for measuring smaller price movements. On the other hand, basis points offer a more precise measurement for smaller price movements, but they may not provide the same level of granularity for larger price movements. As a cryptocurrency investor, it's important to consider the pros and cons of using points versus basis points and choose the measurement that aligns with your investment goals and trading strategy.
  845

  212