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Is volatility a must-have in the cryptocurrency market?

  • Thread starter Thread starter Deleted member 403
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Although coins with stable value exists, but they are being abondonned as people don't see any purpose for using them, volatile coins on the other hand got pros and cons, you might win or lose, but when you win, the profit is huge
 
In traditional finance, volatility is defined as the statistical measure of dispersion of an asset’s price. Simply put, volatility describes the extent to which an asset’s price fluctuates over time. An investment is considered volatile if its prices move aggressively up or down daily, as can be seen in the cryptocurrency market.
 
Yes, that is what made the price of all cryptocurrency to be valuable, if there was no volatility then obviously all cryptocurrency could have been a stable coin which won't generate profit to traders and investors.
 
A coin that can't fluctuate and can keep a stable value is a stable coin. So if you're asking about a coin that will always rise with not chance of it falling, that will be near impossible because sometimes stable coins do even fluctuate just that theirs ain't that frequent.
 
Deleted member 403 said:
Is volatility a must-have in the cryptocurrency market? Besides stable coins, is there any possibility of having a coin that doesn't fluctuate and keep a stable value? It's something that I'm curious about but never got around to asking. I'm not overly tech-savvy when it comes to blockchain.

https://www.beermoneyforum.com/forums/crypto-currencies.6/post-t
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The flashpoint in the crypto currency market is the movements and fluctuations in it's value, besides stable coins are there to mitigate losses from conservative investors,and this aspect of trade prevent loss of your investment.
 
For potential crypto currency , volatility is what must be first considered. The fact is that if there was no volatility people wouldn't even bother to invest in cryptocurrency since it may not really be profitable.
 
As long as there is buying and selling in the cryptocurrency market there will always be volatility. There are times when inflation will affect the amount of cryptocurrency people are buying and the market may go very down but if there is excess supply of money in the market it will definitely go very high in value.
 
ahmedo24 said:
Every commodity both online and offline are volatile except those that are meant to be fixed or stable regardless. The forces of buying and selling is the factor behind volatility, if that force must continue to exist volatility can't be avoided in Crypto currencies.
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The issue of volatility in the cryptocurency trading market is something that is always there,this is so because there are very strong forces in the market that always makes the price of cryptocurency to fluctuate,that is what makes the market dynamic.
 
Volatility of the crypto currency market is the main reason why the coin always flunctuate up and down , though inflation also affects the price of crypto currency most of the time ,
 
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