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A benchmark is a reference point used in performance analysis to compare different assets.                                                                       

Understanding the Term

A benchmark is defined as a baseline or a reference point in comparisons based on various criteria. Often used in the financial industry for both traditional and crypto markets, a benchmark is used to determine the performance of assets and investment portfolios.

There are many forms of benchmarks, among which the most popular are the so-called indexes, which are basically financial instruments used to represent a group of individual market prices or a collection of data points.


A benchmark is usually set at the estimated most productive practice or against the performance of other successful assets.

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