Cryptocurrency isn’t anything new–it’s been around since 2009. Today, it’s become one of the world’s most valuable assets, but it still comes with its share of risks. For example, if you’re looking to invest in a digital currency, there are several options, each comes with pros and cons. The Bitcoin era has been called a currency, virtual currency, commodity, and even a bubble. But whichever label you use, it’s clear that Bitcoin is here to stay. And the volatility of cryptocurrency helps you to understand the intricacies of bitcoin investing, so you can decide whether Bitcoin is the currency for you.
What is the volatility of cryptocurrency?
Cryptocurrency, or digital currency, has been a hot topic over the past few years. Cryptocurrencies offer a unique solution, a secure store of value, free from inflation, and a way to transact with untraceable payments. Investors always try to find the right fit with cryptocurrencies. While some are investing in the long-term value of the asset, others are keen on getting in and out of the market in the shortest time possible. While there are many ways to do that, the simplest way is simply to buy low and sell high. However, the cryptocurrency market’s volatility these days makes this strategy not so obvious.
Why is cryptocurrency Volatile?
Cryptocurrency’s market is known for its volatility, but the reason is still not really clear. There are many speculations on why it suddenly became so. But one thing is for sure – getting rich through the volatile market is very difficult. One can only speculate on the future of the Bitcoin era and other cryptocurrencies, but the cryptocurrency market is still growing. In 2017, Bitcoin grew by over 1,000%. In 2018, the prices fell to a low of about $6000 per Bitcoin. Even though Bitcoin has been declining in price, its value has been rising because most people have been speculating that Bitcoin is going to increase in value.
Cryptocurrency has become a hot topic of conversation over the last year. Where it can be difficult to find a common point of reference, there are two major reasons why it is volatile. Firstly, it’s only recently that it’s been possible to trade cryptocurrencies, so many people are new to the market. Secondly, the market is still in its infancy, so hardly anyone knows how it works. This has led to a lot of speculation, where people bet on the potential of new features or speculate on if one currency is better than another.
Bitcoin’s meteoric rise in 2017 was not without its setbacks. The currency’s soaring value is what fueled its popularity, but it is also the cause of many of its problems. The volatility of bitcoin has increased exponentially in the past year, with its price fluctuating wildly. This volatility has not only made it hard to use for everyday transactions, but it has also led to the collapse of several high-profile bitcoin era startups.
Even as the value of bitcoin continues to rise to unprecedented heights, this cryptocurrency is still remarkably volatile, as evidenced by its price range, which has been as high as $17,000 and as low as $3,500. In general, bitcoin’s value tends to fluctuate a lot, and a few days of a sudden drop in price can leave a huge dent in your investment. Volatility is a big problem for cryptocurrencies, particularly bitcoin. Until now, the main reason why the price of bitcoin has remained stable is that it has not been able to meet the demands of the market. But the recent crash of bitcoin might change this. The crash happened because of unprecedented transactions, which resulted in high volatility.