Why volatility is important in Cryptocurrency market

[Hasan Raza]

I know a little bit about volatility in Cryptocurrency.
Any body guide me more about volatility and it's impact on the cryptocurrency market or what are the drawbacks of volatility?

 

[Ltherman]

Volatility just has to do with the drastic and extreme bullish and bearish actions of a coin in the market. I mean we saw Bitcoin at $8k before the pandemic once the pandemic was announced it fell to $3k but started picking up and its now at $40k. There is no form of reasonable control over the coin and that's what makes it so attractive to investors.

 

[Seun4luv]

Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the crypto currency as a store of value and method of value transfer. A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another.

 

[ahmedo24]

Volatility simply means something is not stable it changes rapidly, Crypto currencies are highly volatile because people are engaged in trading them every seconds which brings about changes in the price of the coin according the buying and selling pressure at a particular time.

 

[WhiteHouse]

The genuine estimation of Cryptocurrency is controlled by the market. It isn't constrained by any national bank. Cryptographic money is constrained by a calculation which can't be changed by anyone. Thus, no one has the control on the number of such Cryptocurrency can be made in future. More often than not, the absolute number is fixed. Digital currency esteem is chosen dependent on the connection among organic market. Thus, it is of less significance to gauge the genuine worth out of the blue. Its worth can go up or down dependent on market interest. The estimation of most official monetary forms depends on actual wares like Gold, yet digital currency esteem depends on trust and dread. Any uplifting news in the market can expand the worth while any terrible news will diminish the worth. Government guidelines, new lawful principles, nation based limitations, and so forth are the significant perspectives in expanding or diminishing the g current market cost of digital forms of money. That is the reason digital forms of money are so volatile.

• Cryptographic
• Dependent

• Earn money from home

 

[Kamon c4]

The volatility of cryptocurrency makes it serve the purpose of investments. The unstable price of cryptocurrency makes it possible to make profit and loss from it the cryptocurrency. Though there are stable coin and very few people are interested in them cause it doesn’t incure gain or loss to their money

 

[Ehizzy1]

I think its very much important because without volatility , how is people going to get returns and profit from trading crypto currency and what would be the sole aim of trading , so the volatility is highly needed unless the person might want a stable coin and would not think of earning from trading the coin either way

 

[Josemendez]

I know a little bit about volatility in Cryptocurrency.
Any body guide me more about volatility and it's impact on the cryptocurrency market or what are the drawbacks of volatility?

Volatility is what makes the cryptocurrency market profitable and tradeable. It means price fluctuations which helps one to buy when the price is low , and sell when the price rises. This is why investors are Keen on cryptocurrency investment .

 

[ahmedo24]

Stock market won't have been in existence till today if not for fluctuations in the prices of commodities like forex trading so volatility is very important in every market in which Crypto currency market is not an exception.

 

[Damscooguns73]

Concerning volatility in the cryptocurrency coins. Well, I believe the volatility of tye cryptocurrency coins is the reason why people are investing in them because there is a chance to make profit and lose and the same time .

 

[Blue house]

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. Volatility is very important in every market because it fluctuate the market price

 

[Nurudeen]

Volatility in trading simply means the uptrend and downtrend part in trading. This simply means the bullish and the bearish aspect of any trade you are involved in. If you buy a stock for example and the stock started going down you are in the bearish side of the market and you are at risk of losing your money but if you buy a stock and it's going up you are in the bullish side of the market

 

[Ralphjoe]

Volatility is very important to those that invest in cryptocurrencies in that it's needed for them to quickly make profits on their cryptocurrencies portfolios. Volatility is the high movement, or instability of the price of assets, in this case, cryptocurrency. The coin that is well reputable for this feature is Bitcoin.

 

[giddy]

The sheer volatility of the market allows for the potential of higher returns, presenting a great opportunity for traders and investors to exploit thevolatility of the market to make money in any direction of the market

 

[Mrallison]

I don't know much about volatility in crypto currency market because truth be told i just joined recently but i think it's part of the reason people invest in crypto currency, although it has its down side i think it's advantages are greater

 

[alberello75]

In few words, volatility referring to the financial instrument, it is a measure of the percentage change in the price of a financial instrument over time.
Like any stock market, real coins such as the Euro / dollar ratio, but above all cryptocurrencies such as Bitcoin, are subject to volatility. Indeed these crypto, therefore not palpable coins, are subject mostly to these fluctuations!
This represents the biggest concern of every investor. Obvious this is the first thing that everyone has to pay attention when making investments!

 

[Adeyoola7]

Volatility is a vital concept to understand since it measures risks. ... In other words, a higher risk investment is associated with a greater probability of generating higher returns while a low-risk investment would yield a smaller rate of returns. This is called the risk-return trade-off.

 

[Yan]

I know a little bit about volatility in Cryptocurrency.
Any body guide me more about volatility and it's impact on the cryptocurrency market or what are the drawbacks of volatility?

It's simply the rate at which the price of a commodity goes up and down during the open hours of the trade. So basically when the volatility of a commodity is high, you can make large sum of money real quick and you can also loose it real quick.

 

[Lyrrex]

we saw Bitcoin at $8k before the pandemic once the pandemic was announced it fell to $3k but started picking up and its now at $33k. There is no form of reasonable control over the coin and that's what makes it so attractive to investors.

 

[Rashid]

It is the way of earning , when there is not volatility so investors will not invest so much in crypto currency. So the prices of crypto tokens will remain constant and it will not get any fame so investors will not take interest so much in this crypto world. This unpredictability attracts every one . so it is vital.