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Why volatility is important in Cryptocurrency market

  • Thread starter Thread starter Hasan Raza
  • Start date Start date
Volatility is very important to Crypto currency, it is what makes it very profitable, the ability of the price of the coins to rise very high and drop at any given time make people gain or loss with ever the case may be, if it were to be stable then it would not be very profitable except for long term investors.
 
Hasan Raza said:
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?
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Volatility is very evident when it comes to cryptocurrencies. And in my opinion I think that it is a necessary thing to have in the crypto-currency market because it allows people to be able to trade daily. Without there being any fluctuations in the price of the course of the day people will not be able to trade daily, and they will have to have long-term trading capabilities. This may also reduce their profit. The volatility of the market is one of the main reasons that people get into cryptocurrency trading in the first place.
 
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.
 
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.
 
I believe that cryptocurrency is so unstable in the sense that it makes up for easy access buy uses both the well to do users and the average users. I think this is so so that there will be a fair distraction of profits and loses.
 
To me volatility has more draw back that it's benefit, especially when it is a high volatility. There is volatility in every market, there is volatility in forex market, there is volatility in binary market etc, but their volatile market is not as high as the crypto market..
 
Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and a 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. This unpredictability attract every so it is vital
 
The sheer volatility of the market allows for the potential of higher returns, presenting a great opportunity for traders and investors to exploit the volatility of the market to make money in any direction of the market.
 
there is a decent side to their excessive cost volatility. It gives freedoms to speculators, specifically, informal investors, to become their value. The conspicuous method to use crypto instability is to purchase when the cost is low and sell when it is high.
 
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.
 
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 .
 
Volatility is the bed rock of making. Volatility can be described as the changes in the value of the cryptocurrency. It is the rate at which a crypto value rises or drops. Investors make use of this.
NB crypto currency has higher volatility than foreign currencies.
 
Ltherman said:
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.
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Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
 
Cryptocurrency is all about volatility, otherwise, cryptocurrencies could be just like fiat currencies and nobody would be interested in investing in them, because they don't increase in value which means no profit at all
 
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
 
Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
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Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
Click to expand...
Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
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Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
Click to expand...

Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
Click to expand...
Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
[automerge]1612127650[/automerge]
Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
Click to expand...

Hushhhh said:
Bitcoin's high Volatility is good for investors and traders for real, for me that's a very good thing about cryptocurrency making it perfect for trading and investing because the price can change dramatically by just mere hours in between.
Click to expand...
Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
 
Ltherman said:
Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
[automerge]1612127645[/automerge]



Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
[automerge]1612127650[/automerge]



Some people don't get the fact that its the volatility of this asset class that is even driving more funds into it because it is quite exciting especially as a trader to have this sort of investment where the rates or value are quite volatile.
Click to expand...
Exactly, that is one of the best thing about Cryptocurrency, if the price started to be stable it wouldn't be ideal to invest to it anymore. Rightn is is our chance to take advantage of it's unstable nature to gain profits and earn a lot of money easily.
 
The volatility of cryptocurrency lets it serve the usage of investments. The non stagnant price of crypto currency makes it possible to make profit and loss from it the crypto currency. Though there are stagnant coin and very small amount of people are interested in them cause it doesn’t allow gain or loss to their money.
 
Volatility, as it calculates risks, is a crucial term to consider. Understanding their risk tolerance is for investors and traders often the first move before investments are made. Different people have a different degree of risk aversion, which influences their investment decisions.
 
what kind of silly question is that. There is nothing like the importance of volatility. Volatility happens in the crypto market because it is not controlled by anyone so that price can be controlled
 
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