What are the potential risks and benefits of investing in cryptocurrencies with a negative roll yield?

1 answers

• lolaJan 26, 2025 · 10 months ago
  Investing in cryptocurrencies with a negative roll yield can be risky, but it's important to consider the overall investment strategy. Negative roll yield indicates that the cost of holding the cryptocurrency is higher than the return, which means that investors may be losing money over time. However, this doesn't necessarily mean that the investment is a bad idea. Investors should consider their long-term investment goals and risk tolerance. If they believe that the negative roll yield is temporary and that the cryptocurrency has the potential to appreciate in value, they may choose to hold onto it. Additionally, investors can mitigate the risk by diversifying their portfolio and not relying solely on cryptocurrencies with a negative roll yield. It's important to carefully evaluate the potential risks and benefits before making any investment decisions.
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