Topic: WHY CRYPTO IS SO MUCH VOLATILE (Read 245 times)
Because crypto is spreading all over the world and its value is increasing only, I am sure that the potantial has not been opened yet and there will be much more interesting events.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
It's hard to control volatility as this is what make cryptos attractive to us. If we just see the bigger picture here volatility is what actually gives us decent profit and without volatility we can't maximize the market and we're just stuck in a stable yet boring market. So will you still wish to control it? I know volatility is somehow annoying but just always think unimaginable and always be careful from what you wish for.
This is the nature of the crypto early on. fluctuations is already a reasonable risk to take place. to overcome these things certainly is difficult let alone is indeed the market it is difficult to control the erratic and unpredictable. This may be a consideration of many people before entering in the field of crypto.
One of the major reason crypto is so much volatile is that most of stocks values decreased for more than ten years and there was many bankruptcies.
In crypto market there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.
In crypto market there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.
I think that it is possible thank to the crypto's dependence on the real event in the world and so on. Such influencers could make a great impact on crypto.
Take a look at the past.
In 1980s Japan's stock and property markets were increasing very sharply. It was like a miracle, everyone thought that Japan's technologies are the best and its markets would never crash.
But than in 1990s there was a longest crisis that japans ever seen. Stocks values decreased for more than ten years and there was many bankruptcies.
In cryptomarket there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.
In 1980s Japan's stock and property markets were increasing very sharply. It was like a miracle, everyone thought that Japan's technologies are the best and its markets would never crash.
But than in 1990s there was a longest crisis that japans ever seen. Stocks values decreased for more than ten years and there was many bankruptcies.
In cryptomarket there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.
It seems to me that liquidity is the main feature of the crypto currency. Of course, whales seriously affect the market, one can say - control, but this is not the state. Still, the crypto currency depends on the community, which, as for me, is its positive feature.
Dont think so, when we start to get news like " BTC is 10-12k now" new people also join the bullrun, greed is working that way, human memory is too short)
Because 1. lack of liquidity - Very few are actually trading a single coin and usually holders have too much of one coin. Anything less that 1,000 active traders on a single coin will see strong volatility in altcoins. In Bitcoin, which is less volatile than altcoins, around 100,000 active traders.
Second, there is no real usage/demand for the coins, all speculative. Unlike wheat, oil, rice which can never crash so bad.
but oil ,wheat prices are regulated by the governments but the crypto is decentralized , moreover it is the fact that some addresses possess the significant price of the certain coin not all of the crypto currencies according to you particular coin should dump not the whole market Second, there is no real usage/demand for the coins, all speculative. Unlike wheat, oil, rice which can never crash so bad.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
It is because the price all depends on the market demand, it all depends on the investors and traders since they decide at which price do they sell or buy cryptocurrency. A cryptocurrency without demand most likely becomes valueless.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
That's because people speculate so much in the market. There are actually so many whales, playing the market price. Their power caused high volatile. I think there is no solution yet. Anyway, this thing is both good and bad so let's just enjoy this. 
Until the market has no regulation and punishments for manipulation, the market will be very volatile. Big money earns a lot of money.
Just wait for the big investors are getting in Bitcoin.. I hope they do.
Watch the historical price of bitcoin and altcoins.
If you go up 2000% we can also go down quickly.
Watch the historical price of bitcoin and altcoins.
If you go up 2000% we can also go down quickly.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
It is because the price all depends on the market demand, it all depends on the investors and traders since they decide at which price do they sell or buy cryptocurrency. A cryptocurrency without demand most likely becomes valueless.
Crypto is so much volatile because it has to do with supply and demand, it's a free market where people choose the price at which they want to buy or at which price they want to sell. so anyone can sell or buy at any given price available, and there nothing anyone can do about it.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
There are many many reasons but I think one of the major reasons on this volatility is because of the lack of regulation in the cryptocurrency market. Despite the good things about crypto, there is so much negativities going on around.
crypto space is so volatile because people are in charge of their money and will make their decision without facing any consequences, you can sell at your own price and you can buy at your own price.
Look, crypto has been volatile since its beginning. Even after almost ten years of its existence, crypto is in developing stage and still not ready for a worldwide usage. Plus, it is similar to the stock market (as its assets are digital as well) and its value fluctuates more than the value of real estate or national currencies. In addition, FOMO and FUD are stronger in a market full of people that had no experience with trading before which makes them more vulnerable to their emotions rather than analysis and rational decisions. Ultimately, it is very difficult to predict the price of these assets in the future, so it might make you rich or poor while you are playing a lottery of life 
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This is linked to several factors but for me the biggest influence of this volatility and the lack of volume in the currencies, for example, with any 10,000 coins you can manipulate the market of several currencies and this is because the currency has no volume to brake the invested by large or small investors.
why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?
Most asset class turning into emerging markets are usually susceptible to huge fluctuations, gold and silver had their own share of this, the volatility will eventually reduce as cryptos gain wider adoption Jump to: