How are you everyone?Today I will discuss with you about cryptocurrency price volatility. I am young and my experience is very little so please forgive me if there are any mistake.

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Cryptocurrency is a fast growing market. I'm sure you know both sides of the coin that has created crypto queens—and paupers. But these wins and losses don't necessarily come from winners picking good coins and losers picking bad ones. It is possible to talk to two people who both invested in Dogecoin, but one lost money and the other gained. Whether you win or lose depends on timing. This is because cryptocurrency is an incredibly topsy-turvy investment; All cryptocurrencies experience huge fluctuations in their valuation—a quality known on Wall Street as volatility. Cryptocurrency is an incredibly volatile investment. In one day, the value of Bitcoin dropped by 30%.

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It is not intrinsically valuable. There is nothing to back up the value of gold or diamonds or crypto. At no point did the US Treasury say, "Yeah, anytime someone wants to bring us bitcoin, we'll give them X number of dollar bills from our reserves." Not all die-hard crypto fans will agree, but there is an argument that the value of crypto really comes down to how much people are willing to trade for it – in commodities, other cryptocurrencies or dollars.
There are investors who are interested in using crypto as a hedge against inflation or as an investment vehicle rather than as a currency. But without anything intrinsically valuable to back up the currency, the market value of crypto is based entirely on guesswork, which is essentially educated guesswork.
For example, Vox mentions an interesting graphic in “The Musk Effect” or the phenomenon of how strongly Bitcoin's price is affected by Elon Musk's tweets. If it makes you nervous that one person's Twitter account has a huge impact on the value of your investment, good. It should. Having your investment worth one person's volatile opinion sounds like a huge risk to me.