WHY CRYPTO IS SO MUCH VOLATILE - page 2.

cryptogeek101

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Quote from: Muhammad Muneeb on August 05, 2018, 01:50:29 PM

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 ?

What is the level of volatility? I think there is no financial instrument that does not some elements of volatility, what we need do to survive is to be strategic with our investing approach.

Mrvalentine

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Despite company sized valuations, cryptocurrencies don’t sell a product, earn revenue or employ thousands of people. They generally don’t return dividends, and just a tiny amount of the total value of the currency goes into evolving it. Because of this, it is hard to value. How do we know if it is overbought or oversold? When is it a good value or overpriced? Without any fundamentals to base this information off of, we can only rely on market sentiment, often dictated by the media that makes money on viewership.

Cryptocurrency is a worldwide phenomenon, and while governments are clamping down on the industry, regulation is still in its early days. Such limited regulation allows for market manipulation which, in turn, introduces volatility, and discourages institutional investment, since a large fund has no assurances that their capital is truly secure or at least protected against such bad actors.

arthur304

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Well the market is still very young and has less liquidity. Less people holding more of a coin. I believe when there is mass adoption it will reduce the volatility.

jeungo

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There is too little money in this market segment. Unfortunately, volatility is an indicator that even not too large whales can manipulate the course. Within countries, such volatility would be fatal or would show very poor dynamics for investment.

invincible49

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First of all, no weak hearted person should never come into this sector. This market always moves because people are investing, trading various coins/tokens from time to time and there is that pump & dump situation created and orchestrated by whales who only do those things to make the market even more unstable from time to time and weak hands react to those moments of fud by selling their assets at loss. It is a cycle of cryptocurrency. So, there's really nothing we can do about it apart from trying not to panic during the bloodbath of the market.

room237

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Another reason for the volatility is that the market is very thin most of the time and someone without much money can push things around. A larger investor could push Bitcoin around thus controlling the market. You better believe the big boys are in here pushing things around.

valnd

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Until the end of time

In my own opinion, crypto volatility can only be controlled if we have more institutional investors than normal investors, institutional investors invest in a project for a long term purpose, they don't invest in a project and dump it after one or two months, like the way normal investors do. they will invest in a project only to dump them all on the first day it hit exchange.

passwordnow

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Those people that lost a lot and blaming the volatility of crypto's shouldn't invest.

The lack of understanding makes these people lose because they just been told that they'll become rich by investing to crypto's.

Valentina N

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Maybe because some such coins have no any value in real life and have no MVP only just hype and speculations?

bobo012

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Quote from: Muhammad Muneeb on August 05, 2018, 01:50:29 PM

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 ?

If it would not be volatile you wouldnt be here. Why would you be? Volatility is normal in a new asset that has such wide yet unknown applications. It is called price discovery and will go less volatile with time

delphic

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The volatility of cryptocurrencies is due to the fact that this is a new round in the economy,which quickly gained momentum.Very large funds are floating in this area,and people who know this a little.The mistrust of investors to a greater extent from a misunderstanding of the process.And losses on investments can be in any sphere, whether it is exchange rates, the price of oil or just shares of different companies.Did you see what happened to Facebook?)Do not be afraid,we must act.

ePesoInitiative

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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.

Muhammad Muneeb

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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 ?

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