Why volatility is important in Cryptocurrency market

[Alexandoy]

Think if the price of crypto coin is very stable that it never changes for a year. What would that serve for the traders? The volatility of the prices is the means of earning when it comes to trading. That is the reason why many who invest in stocks are turned off by blue chip stocks. They are very stable in the market price that traders do not earn anything.

 

[jeff87]

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

I think you got the right answer to this question about volatility of cryptocurrency. That is the reason why I trade in cryptocurrency. When the price of the coin is very low, that is the time that I will buy it. Then I will wait for the price to go up. When the price is now higher that's the time I will sell my coins.

 

[Setfragil]

Without the volatility in cryptocurrency, many people wouldn't have invested in it. The volatility can make your investment to double within a short period of time.

 

[Justin]

Volatility is the nature of crypto currency. When crypto currencies were created the creators did not devise it as an investment but rather payment system, but when people began to trade, volatility increased

 

[Josephjossy]

Crypto currency is all about having patience. Don't be in a hurry to see off your crypto currency. If you invest and the value goes down, just relax and hold your crypto currency, it will surely rise again, some people are in a hurry to sell of there coin and end up losing money

 

[Shigobad2020]

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 simply means when something is not stable and always flunctuate , nd that's exactly why volatility in crypto currency is very important and has an impacts onnthe increase and decrease of the crypto currency.

 

[Good-Person]

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.

If cryptocurrencies were not volatile, no one would be able to trade in cryptocurrencies and make money. Volatility factor makes it possible. Unfortunately, volatility is the main reason why people also lose money.

 

[HayKay]

Volatility in my opinion is what makes cryptocurrency unstable and not worth investing in. It only drives greed and leaves the honest ones on the losing end.
Except a way is found to make sure there are tighter regulations, I fear cryptocurrency would be taken over by the harmful people

 

[Hena101]

The reason why volatility is important is because this is what make investors to earn in the market because without it everything will be static in the market.

 

[Chibson]

If there is no volatility then there is no way people will make money on cryptocurrency and it will just be as if you are investing on a stable coin

 

[tyrim88]

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.

One thing tha makes the market to be ery much attractive and lucreative is the factor of volatility and when this bullish run happens,there are usually more gains for the investors,but the tide can also turn the opposite direction.

 

[ahmedo24]

Volatility in the strength of the cryptocurrency market we all know that but it will be better if the volatility of the currency is reasonable and justifiable so that people who are against it won't tag it as a bubble

 

[Justin]

Crypto currency is market driven and community controlled digital money. Since no one controls crypto currency, the price of crypto currencies fluctuates frequently, and it is guided by buying and selling behaviour of people

 

[tyrim88]

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.

That is actually the main reason why a lot of persons are going into the cryptocurency market,because it is the volatility that brings in the major returens on investment when you are doing trading in the market.

 

[Sotherefore]

The only function I know about volatility in cryptocurrency is that it can help to increase the value of a particular cryptocurrency depending on the supply and the demands of the coin.. it is what make people to gain a reasonable amount of money as profit from the money they have invested in a particular coin .

 

[greenie]

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.

 

[Kaffyfolla]

Volatility is one of the most important variables in determining investment risk. Traditionally, investors will take on a high level of risk if they believe the potential reward is worth the possibility of losing some of their investment. However recently, Bitcoin trading is no longer dominated by retail buyers

 

[GoldenLady]

Volatility is quite high when it comes to cryptocurrency, especially when it comes to altcoins. You can use it to your advantage to make gains especially if you're well versed in how prices move in the market.

 

[Skysaint]

Volatility in cryptocurrency is more like saying that cryptocurrency has a high degree of uncertainty and kind of not stable. People always invest and trade every minute and this causes sudden price changes, it may be for good (bullish) or it may be detrimental (bearish).

 

[Kunkun]

Volatility in crypto currency is important for the investors, that means the value goes down and also goes up, so people buy when down and sell on high also it's also the cause of losses too