What are the implications of a low standard deviation for a digital asset?

3 answers

• gaurav bhosaleOct 03, 2024 · a year ago
  A low standard deviation for a digital asset indicates that the asset's price has been relatively stable over a given period of time. This can be seen as a positive sign for investors, as it suggests that the asset is less volatile and therefore less risky. However, it's important to note that a low standard deviation doesn't necessarily mean that the asset will always perform well. Other factors such as market conditions and demand for the asset can also influence its performance.
  486

  243
• Aashutosh PandeyNov 03, 2025 · 10 days ago
  When the standard deviation of a digital asset is low, it means that the price of the asset has not experienced significant fluctuations. This can be beneficial for traders who prefer a more stable investment. A low standard deviation indicates that the asset's price is less likely to deviate from its average value, providing a sense of predictability. However, it's important to consider other factors such as liquidity and market trends when making investment decisions.
  474

  158
• Alam hussainJun 09, 2020 · 5 years ago
  A low standard deviation for a digital asset is generally considered a positive attribute. It suggests that the asset's price has been relatively stable, which can be attractive to risk-averse investors. For example, at BYDFi, we prioritize digital assets with low standard deviations as they tend to offer a more predictable investment experience. However, it's important to conduct thorough research and consider other factors such as market demand and liquidity before making any investment decisions.
  504

  126