Crypto Currencies Volatility, a successful Rollercoaster

This season we can observe that cryptocurrencies tend to progress and down even by fifteen % valuable on a daily basis. Such switches of price are famous as a volatility. But what if… this is totally normal and sudden changes are among 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 of the news concerning them and rumors are “hot”. After every statement of government officials about possibly regulating or banning the cryptocurrency market we observe huge price movements.

Secondly the design of cryptocurrencies is much more as a “store of value” (like gold were definitely in the past) – a lot of investors consider these as backup investment option to stocks, physical property like fiat and also gold (traditional) currencies. The speed of transfer has as well an impact upon volatility of the cryptocurrency. With the fastest ones, the transfer takes a lot just few seconds (up to a minute), what tends to make them excellent advantage for short-term trading, in case at this time there is no good pattern on various other forms of assets.

What everyone need to take into account – that speed moves also because of the life expectancy trends on crypto currencies. While on frequent markets trends could endure weeks or even years – right here it takes place within even hours or days.

This causes us to the next point – although we’re speaking about a market place well worth hundreds of enormous amounts of US dollars, it’s still a compact amount in comparison with daily trading volume comparing to regular currency market or perhaps stocks. Though on dimensions of crypto currency market place this is a significant and noticeable transaction, therefore a single investor making 100 million transaction on stock market will not result in significant price change.

As crypto currencies are digital assets, they’re subject to specialized as well as software updates of expanding blockchain or cryptocurrencies features collaboration, that make it much more attractive to the potential investors (like activation of SegWit essentially caused value of Bitcoin being doubled).

PandaMiner B3 Pro (RX580 8G) combined will be the reasons we are observing such massive price changes in price of cryptocurrencies within couple of hours, days, weeks etc.

But answering the question through the very first section – among the basic rules of trading is buying cheap, sell high – therefore getting shorter but strong trends each day (instead of way weaker ones lasting weeks or months like on stocks) offers much more chances to produce a decent profit in case used properly.

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