Derivatives & Risk

What is beta and how does it measure crypto market risk?

Beta measures how much an asset's price tends to move relative to a broader market benchmark. A beta of 1 means the asset moves roughly in line with the market; above 1 means it amplifies market swings, below 1 means it moves less. In crypto, a token with a beta of 1.5 against Bitcoin would tend to rise or fall about 1.5 times as much as Bitcoin does. Beta describes historical sensitivity, not a forecast, and past relationships can break down. A research-led approach studies these sensitivities across constituents before building an index. See how Qatobit documents its methodology.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.