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What to say to someone who says that cryptocurrency is “too risky?”

A brief comparison of the risk of Bitcoin, Ether and BNB versus some popular technology stocks
Binance Research (Shivam Sharma)


  • We explore how “risky” Bitcoin, Ether and BNB truly are when compared to a number of popular technology stocks that have been common investments in recent years

  • We see evidence indicating the relative safety of Bitcoin, Ether and BNB in <2.5% drawdowns when comparing against the “SMART” stocks and Tesla, Inc

  • Drawdowns below 5% show less favorable figures for Bitcoin, Ether and BNB, but these have rapidly improved in the recent time horizon and getting better

  • Most notably, Bitcoin, Ether and BNB lead the group in daily closes of 2.5%+, with Ether topping the chart across the time periods we are looking at

  • In terms of absolute drawdowns, Bitcoin, Ether and BNB demonstrate notably lower risk than the “SMART” group and the China Concepts Stocks

  • Data for Bitcoin is particularly encouraging, demonstrating lower loss potential than both Netflix, Inc. and Meta Platforms, Inc.

  • Bitcoin’s strongest open in 2022 was just under $47.5k, whereas the weakest open was at $36.3k, representing a 23.6% maximum unrealised loss this year. Perhaps we can compare this to NVIDIA Corp (30.6% max. unrealised loss), Meta Platforms, Inc. (45.0%), Roku, Inc. (57.2%) and then talk about what is truly “risky” !

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About Binance Research: Binance Research is the research arm of Binance, the world's leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.

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