I'd see the key role of these traders, they are helping the market become more volatile than the usual trend we experience. More traders, more market movements. So I expect that the market become more volatile in the future than today due to the growing number of active traders. And that is also the time we need to be more careful and analyze the market situation as well. And the riskier it looks like. But the good about this situation especially when using an exchange that has a huge trade volume is that it is easier it fill our order.
If I am going to ask, I prefer to have a high-volatile market than a low-volatile for this will matter a lot in trading.
Topic: Does number of traders affect volatility? (Read 609 times)
It doesn't directly impact the volatility but it indirectly has an effect on the volatility and as long as we have traders trading Bitcoin we will see the market moving and it can be stopped at only one figure only in one situation wherein all the Bitcoin has been purchased by one person and he is not selling it or else there is a co-ordination between all the trading to paise the trading for certain period of time which is impossible.
The number is not important, but investments. If there were a million traders with amounts of $10 each, they would not have the same impact as 1,000 traders with $200,000 per trader. Therefore, if the traders’ investments were shy, they would not have an impact compared to the income of institutional investors who will move the price strongly and quickly. Investments are good, as retail investors may have an impact, especially since their trades are carried out on the spot-market, where the impact is immediate on the price compared to OTC for institutional investors.
The answer will vary and depend on the size of the investment, not the number of investors.
The answer will vary and depend on the size of the investment, not the number of investors.
If there were 1000 traders and each one made 200k, That is also around 200 million dollars. That's why not all traders have that amount that is entered into the trading exchange, whether it's CEX or DEX. So, it means that the price volume of the market is moving not because of the number of traders, which you said I also agree with.
Because there are others like Micro Strategy that can buy bitcoin worth $200 million, and even other companies like Blackrock can also buy large amounts of bitcoin. It also means that traders have different capital sizes and are not the same.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
The increasing number of traders has an effect on market volatility. For example, you can see the tokens that are currently hype and those that are going sideways. And you can compare the trading volume. And actually more traders or increasing trading volume is actually a good thing and even for us daily traders, this volatility is what we exploit to get small profits in the near future with the scalping method. And the increasing number of orders on the market also makes transactions easier. But the more volatile the market, the higher the risk. Because sometimes the market becomes more difficult to analyze. But as long as the trend hasn't shown a reversal then it's usually fine. And sometimes Chart Pattern is useful in such markets. looks simple but quite effective. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Yes, it does affect the volatility but you can't really see it as it's so insignificant anyway that bitcoin's still volatile. The more people there is that's trading bitcoin, the more there is the volatility because some might just be hodling but there's someone out there that's selling and buying and most of the time, there's never any time that no one's not selling at the market, the only way that the volatility could ever be removed is if there's some form of unity that we don't have to sell at this point in time but that's not going to happen.
I would like to say at the outset that unrest is normal where there is a large presence of people. Similarly, in any business, once the business grows, it becomes very difficult to sustain it. Which we can realize through trading. At present we see volatility in the trading business due to over-trading in the trading business. So we can say trading was pretty steady when traders were less.
In crypto, I would say yes. You can even notice it on lowcap memecoins that isn't well known yet. There is no pump yet because there is no volatility in the markets. And volatility come with the interests of other people gathering in of the opportunities. If you want to confirm that there is many participants in the move, then check the volume is high also. But if there is price rally yet volume is low, it means there is small numbers who is buying in large amount. And those are the whales.
The market volatility depends on many issues and concerns, the volume of trade is just one factor.
Yeah definitely bro!I completely agree with that. The volume of trades is one of the reasons why a cryptocurrency becomes more volatile because the more supply and demand there is, the more the volatility would be. Bitcoin is a prime example of this because we have seen how Bitcoin used to be so stable in its initial days where there weren't a lot of exchanges and a lot of people buying and selling Bitcoin which means the volume of trades was very low, but as soon as that volume started going up, the price of Bitcoin started moving up as well.
So undoubtedly, when there are more traders in the market trading a certain cryptocurrency, it will be more volatile because there is more demand for it than other cryptocurrencies, and this will also make its price go up since more people will be interested in buying that cryptocurrency.
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Traders are increasing day by day and people are in search of some good income strategies. Trading has become more popular in the previous couple of years.It surely will affect the volatility of the crypto market as more investors the different will be the interest of investing and the more volatile a project will become.
People have open their eyes on trading, and it has increased the numbers of people to become a traders in the community because they have experienced progress in those that are using it to make money, and never to depend on one source of income again.Since the buyers and sellers are the major people who are in a position to change the price in the market, and they are the ones that caused bull run and bear run in a particular season, don't forget that they use to change from the market because you can't find bull market and bear market at the same time.
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That's not a negative thing we just need to get enough skills to make an investment.volatile market conditions can also give you some very good profits if you can predict the market trend by the skills you gained. So it has a negative effect also but there is a positive one too.
What is keeping traders to remain in profits making is the skill they have before going into trading, and it will not make such traders to miss their opportunity to earn well from the market because they will surely trade during the bull run.
As the day goes by, the population is able to pay, along with the increase in population, all the demands are also increasing. Therefore, the interest of people to trade in crypto currency is also increasing. It is expected that the number of traders will increase as the days go by. Of course, I will say one thing to all traders that it is very important to be successful without being honest and if you check the market and invest, you can definitely become a successful trader.
Day by day people are getting aware about trading and as day goes by the number of people doing trading is also increasing. As the number of people trading in cryptocurrencies increases, this can have an impact on the cryptocurrency market as well. But trading is as risky as it used to be, is still risky, and will continue to be risky in the future. We should understand that trading is actually not that easy. A major reason for this is that your single decision in trading can make or break you financially. Therefore, even if the number increases, it is not like this where people will become skilled very easily and return with a bag of money as soon as they trade. There are very few skilled people in every field of work in this world, I don't think the number of skilled traders is very high among those who are trading in crypto currency market.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
As the market buy/sell demand increases, that certainly affects the volatility of the market price. Less volatility means less activities in the market. That is why we couldn't make ourselves confident of our strategies that worked in the past as someday this is not effective anymore. Traders make the market more volatile. However, we can say it has a negative impact on the market making it too risky, and should look more into market analysis. But on the other side, this will also help us active traders to possibly earn more every day. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
We need to erase the negative thoughts that forming on our minds, as that can only limit us from doing what we like to do and prevents us from being successful. If not and we fail, that is fine as well, but apart from traders, the investors and those who buy a coin for different purposes, they are also a contributing factor to the intensity of volatility.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
It will increase even more because we are in a bull run now, but of course it still depends on the amount traded by traders. It means that if that is a large amount, let's say that each trader has 100$ each and the number of traders is 1M, which means that 100M dollars will be immediately introduced to the market.
But the question is, are there only 1 million traders that we have in this field of crypto or bitcoin industry in the whole world today? Because each trader does not have the same amount they trade in the market, right? So, there is really an impact on volatility no matter where we look at it.
Amount impacts volatility more than number of traders. If there are 100 people with 100 million dollars versus 100k people with 1 million dollars, then the ones with 100 million will impact it a lot more. Volatility happens when some people buy a lot of bitcoin or sell a lot of bitcoin, which means it all depends on the amount. If there are a lot of people but not a lot of money then how could that impact the price, it usually won't and that is what matters.
I personally believe that we need to make sure that we could move the needle with the amount we are talking about. Don't get me wrong more people usually does mean more money, but it is not a must and even a few people could impact the volatility in the end.
I personally believe that we need to make sure that we could move the needle with the amount we are talking about. Don't get me wrong more people usually does mean more money, but it is not a must and even a few people could impact the volatility in the end.
I agree with your points but I think the number of traders also matters in some cases, let me explain how.
You are right that the amount of money is what impacts the volatility in a market in reality, but when the number of traders is less, that volatility would take more time which means the market would be a bit stable. The reason behind that is, that if there aren't a lot of traders, there wouldn't be a lot of asking and bidding prices, and fewer bids or asks mean more time for the price of an asset to change.
If only 10 people are trading a certain cryptocurrency, you would barely see its price moving up or down much because the number of traders isn't high and even if those 10 people have a lot of money to buy or sell that cryptocurrency, they wouldn't be able to do that quickly because there aren't a lot of people willing to buy or sell that cryptocurrency. Now change that number from 10 to 100 and you will see a big difference.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
That can somehow contribute to the volatility of the price as every trader have their own strategy and we all have to buy and sell as a trader, and those traders makes the market active 24/7. Though I don’t agree that it is better before where we have few traders because traders create liquidity as well which is very important in the market. The market volatility depends on many issues and concerns, the volume of trade is just one factor. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
There's strength in numbers, but I don't know if the saying has anything to do with cryptocurrency traders nor it having anything to do with volatility.
One fact is that the more the number of traders willing to trade at the time, is the more congested the network will be.
The factor that drives price is demand and one person can demand a lot more than even 20 people could demand and if there aren't more traders willing to sell, how will this quota of demand be met?
Also, an investor who is interested in owning BTC may decide to buy some and keep and that's one distinction between being an investor and a trader. Even if the investor occasionally swaps or spot trades before withdrawal, so long as it is not a constant practice, he or she doesn't really qualify in my context, to be called a trader.
I think the size or number of trades at a certain frequency, has a lot to do with volatility as compared to the size or number or traders.
One fact is that the more the number of traders willing to trade at the time, is the more congested the network will be.
The factor that drives price is demand and one person can demand a lot more than even 20 people could demand and if there aren't more traders willing to sell, how will this quota of demand be met?
Also, an investor who is interested in owning BTC may decide to buy some and keep and that's one distinction between being an investor and a trader. Even if the investor occasionally swaps or spot trades before withdrawal, so long as it is not a constant practice, he or she doesn't really qualify in my context, to be called a trader.
I think the size or number of trades at a certain frequency, has a lot to do with volatility as compared to the size or number or traders.
Amount impacts volatility more than number of traders. If there are 100 people with 100 million dollars versus 100k people with 1 million dollars, then the ones with 100 million will impact it a lot more. Volatility happens when some people buy a lot of bitcoin or sell a lot of bitcoin, which means it all depends on the amount. If there are a lot of people but not a lot of money then how could that impact the price, it usually won't and that is what matters.
I personally believe that we need to make sure that we could move the needle with the amount we are talking about. Don't get me wrong more people usually does mean more money, but it is not a must and even a few people could impact the volatility in the end.
I personally believe that we need to make sure that we could move the needle with the amount we are talking about. Don't get me wrong more people usually does mean more money, but it is not a must and even a few people could impact the volatility in the end.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
I would like to say at the outset that unrest is normal where there is a large presence of people. Similarly, in any business, once the business grows, it becomes very difficult to sustain it. Which we can realize through trading. At present we see volatility in the trading business due to over-trading in the trading business. So we can say trading was pretty steady when traders were less.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
I actually don't see it that way, the higher numbers of traders in the market doesn't affect the volatility of the market, what I think that affect the volatility is the market cap, if the market cap is high, their wouldn't be much volatility, but if the market cap is low, the volatility will be very high, that's why shit coin gives more roi than Bitcoin or Ethereum.
And another thing I think that easily moves the market is when those institute and the bigger boys enters the market, at that time, for sure the volatility will be very high, but it doesn't happen that often and it's just happen in a short period of time.
The number is not important, but investments. If there were a million traders with amounts of $10 each, they would not have the same impact as 1,000 traders with $200,000 per trader. Therefore, if the traders’ investments were shy, they would not have an impact compared to the income of institutional investors who will move the price strongly and quickly. Investments are good, as retail investors may have an impact, especially since their trades are carried out on the spot-market, where the impact is immediate on the price compared to OTC for institutional investors.
The answer will vary and depend on the size of the investment, not the number of investors.
The answer will vary and depend on the size of the investment, not the number of investors.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
People trade bitcoin than shit coins but why bitcoin is less volatile than shit coins? More people trade gold but gold is less volatile than bitcoin? More traders does not mean but the marketcap is what that is very important. The lower the marketcap of a coin, the higher the volatility. Not about the higher the number of traders.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Number of traders does not have a direct impact or effect on the volatility of the market Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Lower liquidity usually results in a more volatile market and cause prices to change suddenly, higher liquidity usually creates a less volatile market in which change in prices won't really affect the direction of the market
basically when something shady gets pulled off by foundation behind the coin itself or when a good news coming out price won't be volatile.
but i've seen many times a coin that has just recently deployed and traded on the market are having so massive volatility that the price always changing tides every minutes.
but overall if a coin already having established place in an exchange for a long time maybe weeks it can easily gains stability, even though liquidity isn't sufficient.
determining relation with price stability, there are many factors that i think could affect it.
Quote from: God bless u
Traders are increasing day by day and people are in search of some good income strategies. Trading has become more popular in the previous couple of years.It surely will affect the volatility of the crypto market as more investors the different will be the interest of investing and the more volatile a project will become..
That's not a negative thing we just need to get enough skills to make an investment.volatile market conditions can also give you some very good profits if you can predict the market trend by the skills you gained. So it has a negative effect also but there is a positive one too.
That's not a negative thing we just need to get enough skills to make an investment.volatile market conditions can also give you some very good profits if you can predict the market trend by the skills you gained. So it has a negative effect also but there is a positive one too.
If you look at the numbers of traders that newly join crypto trading today you will discover that the numbers of traders has increased again, because the moment people got convinced that crypto trading is the best trade someone can get involve to grow wealth, and they will like to be part of the train. You can see how it affected the volatile in this season for the market price to broke into ATH to caused massive increase that is making traders to trade their coins freely without the fear of loss in the market. But many traders always embrace the positive side to get the prediction right by trading their coins during the bullish season which is the favourable season many traders used to increase their income and to increase the numbers of new traders in the market.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
For me yes, I also experienced it in social media, where I have some friends in social media where they keep posting about their trades or profits during the bull market. But when the bear market comes, I don't see them anymore. Because for sure, most of their trades are only long trades and active only during a bull market.Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Overall, more traders may improved liquidity and lower volatility, but this affect is dependent on a number of factors, including trading behaviour, market sentiment, and technology use.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Number of traders does not have a direct impact or effect on the volatility of the market Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Lower liquidity usually results in a more volatile market and cause prices to change suddenly, higher liquidity usually creates a less volatile market in which change in prices won't really affect the direction of the market
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I'd consider it as one factor since there are probably a lot of factors involved with how volatility changes such as liquidity. Suppose you were to rank which factor is involved the most. In that case, it'd be pretty hard to describe since even if a number of traders were to enter the market, without a significant amount of holding of that specific coin they aren't really going to make any waves. It'd be different for huge traders in the scene though. And I believe trading would always be difficult regardless of the number of traders.
it depends. if the market cap of the asset is very large, no matter how many people trade the asset, the price will be quite stable, for example like forex trading, you see how many people trade usd, but that doesn't make the usd value unstable.
USD is a stablecoin, the price is fixed no matter what happens in the market. You can't compare it with other coins like ETH, BNB, and Solana.Quote
but if the marketcap of the asset is not so big and more people trade it, maybe the price will be very unstable, because there will probably be more people manipulating the price and making the price of the asset very unstable.
Generally, the number of traders is a huge contributing factor in regard to the volatility of the market. Whether it has a huge market cap still, we can see the impact of it. Traders prefer to use highly volatile coins because this would be a great chance to earn more rather than using low volatile projects. As the number of active traders keeps on increasing, the more we expect high volatility in the market which is actually good as it means that the crypto market is active. 
Of course it does, only if the said traders hold a significant amount each. If they are just your regular retail traders then I think they will all need to be geniuses in order to make some nice moves in the market and get that volatility going.
Also, it's worth noting that if these small fishes don't act collectively, they can't trade against the market and their volume will just be eaten by the huge traders in the scene. So all in all, their net impact in the market is 0 and have effectively added no volatility to the market at all.
Fluctuations happen due to different players affecting other people's decisions by moving the market to their own bidding. Essentially, more number of traders won't add that much in volatility unless they know what they're doing.
Also, it's worth noting that if these small fishes don't act collectively, they can't trade against the market and their volume will just be eaten by the huge traders in the scene. So all in all, their net impact in the market is 0 and have effectively added no volatility to the market at all.
Fluctuations happen due to different players affecting other people's decisions by moving the market to their own bidding. Essentially, more number of traders won't add that much in volatility unless they know what they're doing.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Yes number of traders will affect the volatility of the market but as a well equipped trader, you should be able to make perfect not minding the volatility of the market. The number of traders getting involved in cryptocurrency trading shouldn't be your concern as it is always going to increase because adoption is increasing and more people will want to make money without holding for very long and they can do that through trading. The more traders we'll have and the more money and maturity that gets into the market is the less volatile the market will become therefore the cryptocurrency market will stop being very volatile and entertaining as it's and by then institutional traders would had become a permanent part of the market. There'll still be some volatility but it won't as unpredictable as it's presently.
it depends. if the market cap of the asset is very large, no matter how many people trade the asset, the price will be quite stable, for example like forex trading, you see how many people trade usd, but that doesn't make the usd value unstable.
but if the marketcap of the asset is not so big and more people trade it, maybe the price will be very unstable, because there will probably be more people manipulating the price and making the price of the asset very unstable.
but if the marketcap of the asset is not so big and more people trade it, maybe the price will be very unstable, because there will probably be more people manipulating the price and making the price of the asset very unstable.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
What matters is the money pursuing a particular asset, so even if the number of traders went up but the average capital held by each one of those traders went down then the volatility will go down, and when it comes to the difficulty I would think that now it is way more challenging to make money with trading than in the past, as now professional traders are dedicating their time to trade the market of cryptocurrencies, which in return is increasing the average skill level of the traders on the market, and anyone that is below that baseline has no hope of making money this way. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Traders are increasing day by day and people are in search of some good income strategies. Trading has become more popular in the previous couple of years.It surely will affect the volatility of the crypto market as more investors the different will be the interest of investing and the more volatile a project will become..
You talked about it inaccurately.With bigger trading volume, volatility will become smaller. You can see Bitcoin ROIs with different past three cycles and see how its ROIs changed from very high to lower and lower cycle by cycle.
Marketcap and trading volume are two biggest factors that affect on price volatility.
Bitcoin & Traditional Assets ROI (vs USD)
ROI chart
Bitcoin price history
Traders are increasing day by day and people are in search of some good income strategies. Trading has become more popular in the previous couple of years.It surely will affect the volatility of the crypto market as more investors the different will be the interest of investing and the more volatile a project will become..
That's not a negative thing we just need to get enough skills to make an investment.volatile market conditions can also give you some very good profits if you can predict the market trend by the skills you gained. So it has a negative effect also but there is a positive one too.
That's not a negative thing we just need to get enough skills to make an investment.volatile market conditions can also give you some very good profits if you can predict the market trend by the skills you gained. So it has a negative effect also but there is a positive one too.
Does the number of traders directly affect the volatility of the market?
I think the number of traders just has a little influence on market volatility, because it is possible that with a large number of traders there is an opportunity for more transactions to occur. And more transactions will increase demand and this can cause volatility.
However, of course it will not be affected if the number of traders do not carry out transactions. Silent traders cannot increase volatility, but whales that move even with small numbers will have more of an effect on the market. Because cryptocurrency volatility is inversely proportional to capitalization. This means that the higher the capitalization of a coin, the lower its volatility.
Does the number of traders directly affect the volatility of the market?
Yes as it increases the demand.If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Pretty much because the demand wasn't that much before. But we can also think of having few traders in the market but most of them are likely the whales. They bring so much demand that even they're less, they also contribute to much volatility. 
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
What is more important in trading is the amounts that are used in trading. It is not actually about the numbers of traders but the capital that is involved. Just imagine 10000 people trading in the market with huge capital and at least an individual trader is trading with 100,000k , this is enought to create volatility in the market. But when the numbers are huge like 1,000,000 traders using just $100 to trade, this is not going to make a great impact and the market is not going to be as volatile compared to the former. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
The more the price of crypto curencies including a very significant one is bitcoin, I think it has an interesting story / momentum when density and some people trade and save it. so that the confidence of traders in crypto tends to increase until now, we agree that decentralization has the freedom to even sell retail.BLockchain records all transactions and is amazing.
For me, when the queue is quiet, it is indeed smoother, but the density of transactions also brings validation up, fees increase and volume also increases until there is a pump. that's what we hope for with the increase in the price of the coins we save, it's better.
From this trust, small talks arise to people who are new to crypto, every day there may be people who buy it once, because I often encounter social media or digital platforms, one of which shows the benefits and mechanisms of cryptocurrencies.
Indeed, each coin is different in volatility, because the interest of personal interest in coins that have been listed on exchanges varies. when faced with a high volatility front gets a higher profit or a good price volatility is not too wild but very impressive, like dividing 50% is quite interesting for the conditions of the two markets.
For me, when the queue is quiet, it is indeed smoother, but the density of transactions also brings validation up, fees increase and volume also increases until there is a pump. that's what we hope for with the increase in the price of the coins we save, it's better.
From this trust, small talks arise to people who are new to crypto, every day there may be people who buy it once, because I often encounter social media or digital platforms, one of which shows the benefits and mechanisms of cryptocurrencies.
Indeed, each coin is different in volatility, because the interest of personal interest in coins that have been listed on exchanges varies. when faced with a high volatility front gets a higher profit or a good price volatility is not too wild but very impressive, like dividing 50% is quite interesting for the conditions of the two markets.
honestly volatility is such an unpredictable thing there are many factor to determine whether something can affect volatility but having higher number of trader doesn't necessarily means the market gonna be a lot more volatile, if you can see, a coin that gets listed newly on reputable exchange with abundant trading volume gonna fluctuates so hard in the first hour because many people are enthusiastic about the trades, that motivated some of them to speculate hard thats why the price difference sometime really far within certain intervals.
meanwhile if you observe a market with higher trading volume that have been listed in the exchange from long time ago with number of trader that's definitely high enough like bitcoin and ethereum for example regardless of the trading pair here, the volatity isn't much despite there are i guess equal number of trader if not more compared to new coin getting listed.
it depends on the circumstance of the coin itself if its new coin people speculate that in itself causes volatility.
if the market is already old enough, people just follow the current of the river.
meanwhile if you observe a market with higher trading volume that have been listed in the exchange from long time ago with number of trader that's definitely high enough like bitcoin and ethereum for example regardless of the trading pair here, the volatity isn't much despite there are i guess equal number of trader if not more compared to new coin getting listed.
it depends on the circumstance of the coin itself if its new coin people speculate that in itself causes volatility.
if the market is already old enough, people just follow the current of the river.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Yes, when there will be more traders, then there will be more money in the market. which means more traders won't have the same sentiments (if they have then that's a good thing) but if they don't like some have bullish and some have bearish sentiments then predicting the market becomes a little difficult. But if the greed index is overall showing a greed score high then that's mean overall market's users are bullish and trading won't be that difficult in that timezone.Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Just like it is now, if you see the greed index at high score on CMC, market is bullish, but if the sentiments of some of the users changes and if those users have high volumes then market's volatility will also changes. In my opinion, if more traders are joining but they have less money then that's not matter at all. All that matters to market's volatility is high volume of money flowing in and out. I hope you got my point.
Active investors and traders are responsible for volatility. When there are consistent orders either the buy orders or the sell orders in the market we tend to see the price changes in real time. This also occurs most times when most of the buyers don't agree with the seller on the selling price. Most people tend to misunderstand the part that they feel news affects the volatility more. No, it doesn't. News triggers traders who tend to follow the news for their day-to-day trading activities. This favors them sometimes and most time they end up losing.
Common sense is the most important thing in most trading. Because you often have to decide very quickly that you will take the next decision and based on that your profit and loss will be determined. But it seems to me that the images you have shown as examples are not followed by most traders, because most of them try to present their arguments with contemporary thinking. So it seems to me that contemporary thought plays the most active role.
Let me put it this way, you have to be a critical thinker to be successful in trading. When you are too slow to know what and when to execute will make traders lose so many opportunities. Also, being too quick to take action without considering other options would hinder success in trading. A trader needs to be fast in thinking and have patience to evaluate the different options that comes in his mind. Although it doesn't mean he has to take all day or all night before entering the market.
It depends, especially in certain market conditions because there are times there would be plenty of traders but the market will barely experience any volatility. For instance: When buyers and sellers in a tug of war and the market ends up being in an indecisive state. In such a situation, there were plenty traders but prices would barely move. This happens from time to time.
To conclude, I'd say a 50:50 chance because there are other factors that would affect the market enough for it to be volatile.
To conclude, I'd say a 50:50 chance because there are other factors that would affect the market enough for it to be volatile.
Technically yes, because traders or investors are the ones who make the market move, every engagement or every trader a trader does could affect the movement in the market, lets take example of what we call whales, they are the investors that brough a very huge amount of assets and because of that they greatly affect the market the scary part is that they could also manipulate the market, I know crypto currency is cannot be controlled but because of people having such huge amount of assets they could change or influenced the movement in the market, more over a single individual could not do it all of course, if for instance a large group of whales could turn the tides either beneficial for them or for other investors. But in terms of traders, which are increasing, I don't think there will be a great effect unless they open and close a big trade.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Correct me if I am wrong but I believe it is not only the number of trader that makes the market volatile. Yes the number of trader may affect the volatility of the market but I think it depends on the number of factors affecting the market.
Investopedia clearly explained the factors that affect market volatility.
Anyone can click the image for further explanation about the factor that affect the volatility of a market.
Yes this does affect. The volatility of a coin is determined when the price fluctuates a lot. Now why does the price fluctuates? It’s due to the traders only. When traders buy or sell the coin, it lead to the increase and decrease of the price. Now if more number of traders do it simultaneously, then the price can drastically drop in huge scale.
Or the market may rally in a huge scale if the demand outweighs the supply. Wether the price goes up or plummets depends on which outweighs the other one.
Hence number of traders are directly proportionate to the price of the coin and volatility. Hope this helps you OP.
I think it is more proportionate to the liquidity of the coins... since the number of traders does not entirely define the volatility of the market due to the many factors affecting the market volatility.
Yes this does affect. The volatility of a coin is determined when the price fluctuates a lot. Now why does the price fluctuates? It’s due to the traders only. When traders buy or sell the coin, it lead to the increase and decrease of the price. Now if more number of traders do it simultaneously, then the price can drastically drop in huge scale. Hence number of traders are directly proportionate to the price of the coin and volatility. Hope this helps you OP.
It is relative, not absolute, that is, if there are increase, traders allow the price variable, in percentage factors to only be effective depending on supply and demand, (obvius, Right?) so this increase in price variables only has an effect if there are customers, and fortunately there are more buyers and sellers of bitcoin who are not engaged in trading 24/7/365.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Obviously more traders will affect volatility. This is because if there are more traders there more people who are willing to buy and sell bitcoin. Thus affecting the price of bitcoin everyday. In other terms, the demand and supply will increase significantly which will know that this is the reason for volatility. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
As the market buy/sell demand increases, that certainly affects the volatility of the market price. Less volatility means less activities in the market. That is why we couldn't make ourselves confident of our strategies that worked in the past as someday this is not effective anymore. Traders make the market more volatile. However, we can say it has a negative impact on the market making it too risky, and should look more into market analysis. But on the other side, this will also help us active traders to possibly earn more every day. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
New traders mean the market has more newbies who don't have experience in this market and they usually will be new fishes and losers in the market. New traders are keen on using leverages and even high leverages for trading.They are favorite victims of market makers and centralized exchanges for trading fee, funding rates and liquidations.
I agree that increasing number of traders will affect the market volatility but there is another more important factor, capital in the market. Trading volume will be more important for impacts on the market volatility.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Ofcourse yes, more trades, more volume then it will likely to bring more orders with different price ranges but those who you are mentioning more likely to be retail traders who might not make big difference in the volatility range unless they are getting going into trading and starts practicing more and more but as far as I know 9 out of 10 people enters into trading drop their decision in very few months and move on to find other ways.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
There are certain categories of investors who are definitely affected by the volatility of the market and by the volatility of the market they themselves become restless and take various wrong decisions. This is a very common point, if a trader cannot accept this common point then how will he take the big risk of trading later on. A trader has to face all kinds of challenges including mental risk financial risk and those who can accept all these challenges are successful in trading. We should not be disturbed by the temporary instability of the market. There is volatility in the market that is why a trader invests in the market. But there are many stable coins in the market but investors do not invest in those coins because the market of those coins does not change. We must understand that there is volatility in the market of these coins that is why traders buy these coins. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Theoretically and generally, yes it does affect volatility. But the factors affecting volatility are definitely more than just # of traders, namely — liquidity, trading volume, etc. It's all those factors altogether. So no, we can't make an accurate assumption based on a single metric.
Generally when a market has more traders there should be less volatility because there is more liquidity. However right now we are getting a surge of new traders all buying up bitcoin, Ethereum , Solana on leverage and when there is a deep pullback like we had it can get ugly.
What you don’t want is too many one sided leveraged trades. We have crazy high funding rates and it’s not looking good. We need more spot buys. When you see the perps are leading the spot market then it means a minor correction can be on the way.
What you don’t want is too many one sided leveraged trades. We have crazy high funding rates and it’s not looking good. We need more spot buys. When you see the perps are leading the spot market then it means a minor correction can be on the way.
Does the number of traders directly affect the volatility of the market?
I will not think so that numbers of traders will cause a volatility in the market. Volatility is caused by increase in trade, if you have plenty traders who don't add to trade so it won't create that increase inflow. A trader who is just in the market and not trading create no influence or vibes in the market therefore there won't be that increase volatility.
What create volatility is not numbers of traders but the volume of trade. Example if you have a trader who throws in 2 billion dollars to buying bitcoin , that will further increase the volatility because big funds has entered the market.
What create volatility is huge cash inflow and not the number of traders. That huge cash inflow can however be generated by few traders or more traders.
If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Numbers of traders doesn't make trading easy or not. It can only affect market cap. If a coin has a large marketcap then it doesn't crease easy volatility especially if the coin doesn't have high utility like bitcoin. Therefore, it is easier trading bitcoin than other coins despite marketcap because of bitcoin dominance and trend of movement. If a trader spot the trend like we are now on bull, it becomes easier to trade on bitcoin.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
In my own opinion, I think that an increase in the number of traders, particularly retail traders, can play a role in increasing the volatility in the cryptomarket. Even though I know that there are other factors that also come into play to influence volatility. However, from the question standpoint, If there are more traders, it simply means that we would see more and more activities and these traders strategies which differs in all aspects would have a corresponding effect on the market as it changes. This is what lead to volatility. Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
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A high number of traders doesn't affect volatility; if it does, it's just minimal. If you use the forum search to search for topics related to price volatility that have been discussed before, you will read about the different factors that contribute to price volatility, such as supply and demand and positive and negative news. Note that price volatility is trending in two directions: either up or down, so would you say that when there is a price decline, it's as a result of fewer traders? Lol, funny how that would sound.
Take, for example, what @Oshosondy said: so many traders love to trade Bitcoin/USDT pairs, and it's a pair that is mostly traded, but why do shitcoins and altcoins get more volatile in terms of price decline or sudden pump?
Take, for example, what @Oshosondy said: so many traders love to trade Bitcoin/USDT pairs, and it's a pair that is mostly traded, but why do shitcoins and altcoins get more volatile in terms of price decline or sudden pump?
The higher the market cap of a coin, the lower the volatility, and the lower the market cap of a coin the higher the volatility. This is the reason why you can see those shitcoins do have 100x profit, and 1000x profit because they have low market cap, and this is why it is not advisable to invest on new coins because they can crash to zero due to the pump and dump scheme.
The cryptocurrency community is expanding, and that is why we are having more people going into trading for a means to make profit, but that would not affect the volatility of the coin. @Oshosondy gave a good example using gold. Trading has never being easy before and now, but with some new trading tools, if you understand how to use them, you can make it easier for you.
The cryptocurrency community is expanding, and that is why we are having more people going into trading for a means to make profit, but that would not affect the volatility of the coin. @Oshosondy gave a good example using gold. Trading has never being easy before and now, but with some new trading tools, if you understand how to use them, you can make it easier for you.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders,
Yes the volume of open trades this days signifies that there are many traders coming into the market and as you said increases volatility but that doesn’t mean it was less easier than before, one thing I think traders like most is that high volatility and the traders now are enjoying the benefits not to talk of numerous strategies or indicators or fundamentals used to get accurate information on trades this days which to me makes it easier than in the past.
So for volatility rate yes most of the Altcoins without much volume on it are kind of volatile but those with already high volumes like bitcoin have less volatility.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
People trade bitcoin than shit coins but why bitcoin is less volatile than shit coins? More people trade gold but gold is less volatile than bitcoin? More traders does not mean but the marketcap is what that is very important. The lower the marketcap of a coin, the higher the volatility. Not about the higher the number of traders. 
Day by day the number of people will increase and the amount of people's needs will also increase. As people's familiarity with cryptocurrencies continues to grow. And as people become more involved in cryptocurrencies, the number of e-traders will naturally increase. So now the number of traders in the market is more. And yes of course traders are also affect volatilities. Although not all traders are affected by this volatility, being affected depends on the trader taking trades. And because one trader is affected by volatility, another trader gains profit. So I will say that yes traders are also affect by volatilities but the affect traders amount will be large scale on who trade with no skill.
The number of traders is increasing more than before as more people are generally becoming more interested in ways to become more financially independent and as thus in search of skills like trading.
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
Does the number of traders directly affect the volatility of the market? If it does, can we assume that trading was easier before with less traders (less volatility) than now when there are more traders, and the market more volatile?
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