Time-Weighted vs Money-Weighted Returns in Crypto Portfolios: Calculation Methods, Bias Reduction, and Performance Interpretation
Introduction
Choosing the right performance metric is critical for crypto investors who want to understand how well their portfolios are really doing. Two of the most cited measures are the time-weighted return (TWR) and the money-weighted return (MWR), also known as the internal rate of return (IRR). Although both metrics