Crypto Currencies Volatility, a Profitable Rollercoaster

[vahila3034]

This year we can discover that cryptocurrencies tend to move along even by 15% of value on a daily basis. Such changes of price are known as a volatility. But what if... this is totally normal and sudden changes are one of the characteristics of the cryptocurrencies allowing you to make a good profits?

First of all, the cryptocurrencies made it to the mainstream very recently, therefore all the news regarding them and rumours are "hot". After each statement of government officials about possibly unsafe effects of or banning the cryptocurrency market we observe huge price movements.

Secondly the character of cryptocurrencies is a lot more like a "store of value" (like gold had been in the past) -- many investors consider these as backup investment choice to stocks, physical assets like gold and fiat (traditional) stock markets. The speed of transfer has as well an influence upon volatility of the cryptocurrency. With the fastest ones, the transfer takes even just couple of seconds (up to a minute), what makes them excellent asset for short term trading, if currently there is no good trend on other styles of assets.

What everyone should bear in mind -- that speed goes as well for the life expectancy trends on crypto stock markets. While on regular markets trends might last months or even years -- here it takes place within even days or hours. a10 ethmaster 500 mh

This leads us to another location point -- although we are speaking about a market worth hundreds of billions of US dollars, it is still really small amount when compared with daily trading volume comparing to traditional currency market or stocks. Therefore a single investor making 100 million transaction on currency markets will not cause huge price change, but on scale of crypto currency market this is a significant and noticeable transaction.

As crypto stock markets are digital assets, they are susceptible to technical and software updates of cryptocurrencies features or growing blockchain collaboration, which make it more desirable to the potential investors (like initial of SegWit basically caused value of Bitcoin to be doubled).

These elements combined are why we are noticing such huge price changes in price of cryptocurrencies within couple of hours, days, weeks etc.