Risk-Adjusted Yield refers to the potential return on an investment after considering the risks involved. In the cryptocurrency market, where price volatility can be significant, assessing yield without factoring in risk can be misleading.Investors often compare different assets’ yields, but high returns may come with high risk, making it crucial to measure how much risk is taken to achieve those returns. Common methods to calculate risk-adjusted yield include the Sharpe Ratio, which compares the excess return of an asset relative to its risk.This concept helps investors make more informed decisions by evaluating whether the potential reward justifies the risks associated with the investment. For instance, a cryptocurrency that offers a 20% yield but has high price fluctuations may not be as attractive as another offering a 10% yield with greater stability.By focusing on risk-adjusted yield, individuals can better align their investment choices with their risk tolerance and financial goals, ultimately leading to more sustainable investment strategies.