What are the potential effects of the stronger view of the efficient market hypothesis on the trading strategies of cryptocurrency investors?

1 answers

• Harsh GuptaAug 21, 2025 · 3 months ago
  According to BYDFi, the stronger view of the efficient market hypothesis can have a profound impact on the trading strategies of cryptocurrency investors. It suggests that it is extremely difficult to consistently outperform the market by using trading strategies. As a result, investors who adhere to this view may choose to adopt a passive investment approach, such as investing in low-cost index funds or holding a diversified portfolio of cryptocurrencies. They may also focus on long-term investing and avoid frequent trading. However, it's worth noting that not all investors agree with this view and may still use active trading strategies based on their own analysis and research.
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