CRYPTOCURRENCY VOLATILITY - 10% to @Tron-Fan-Club

in Tron Fan Club2 years ago

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INTRODUCTION


Since its inception, the cryptocurrency has demonstrated a great potential to be one that benefits investors. Many well-known investors have become well-known because of their investments in cryptocurrencies. Many developers entered the scene and contributed to the introduction of numerous crypto currencies into the system. Some of these developers were successful, able to withstand the pressure, had sound development and managerial strategies, and also produced wonderful proposals that turned out to be wonderful.We frequently see new highs in the early stages of the introduction because the price of bitcoin has increased significantly since its introduction. Although it wasn't immediately apparent, the price value gradually increased over time, which is how the bitcoin was able to reach 66k. Since then, the price of the cryptocurrency hasn't reached a new high; instead, what we're seeing is a decline in price value as it continues to drop. It became trapped between rising once more and dropping more.

With bitcoin leading in price and then realizing that the current price of bitcoin has impacted all other currencies, the present movement of cryptocurrencies in a falling and rising pattern leaves us wondering what will become of them. I recently visited the site and then I started my cryptocurrency market application. I stayed there for a while to watch the movement of bitcoin and other valuable cryptocurrencies, and I soon realized that whenever the value of bitcoin drops, the value of other currencies will also drop. This suggests that since bitcoin is the most valuable cryptocurrency, anything happens to it will probably have an impact on other crypto currencies. that explains why there is a bull run, and because bitcoin is the most valuable currency, all other currencies will follow it. Conversely, when there is a bear market that has affected bitcoin, it will also affect other crypto currencies. Let's now discuss the actual topic at hand.


Volatility in cryptocurrency


Volatility is the unstable way in which the price of a cryptocurrency fluctuates; it is the fact that a cryptocurrency does not have a fixed price value and as a result, the price fluctuates from one trend to another in a matter of seconds. that is, it is possible for a digital money to be seen on one side and then, a minute later, to have fallen back to that side and likely beneath it. This sums up volatility in a straightforward manner. Consequently, it is the fluctuating value of all cryptocurrencies' prices.


Effect on Investors


This is the primary focus of the lesson for today. After reviewing the definition of cryptocurrency volatility, we will discuss whether investors should be concerned about it or not. Since every investor starts a business with the hope of making a profit, I would respond in the affirmative if someone asked me if this should worry investors. Yes, we all know that even the most cautious investor occasionally suffers losses, but the risk is typically only perceived at a low level. Imagine those people who purchased the bitcoin currency at 66k; did you realize that they are still losing money now due to the high volatility rate of cryptocurrencies. Not to mention the profits, they have not yet recouped their investment. We would not still be having this discussion if there had been a solution to the decline and volatility problems, but until there is a regression in trend movement, it will continue. Because of the current state of the price value and volatility in the crypto market, many investors are becoming cautious when making investments in the crypto industry. What goes down must undoubtedly come up, though, and that is what many investors are clinging to in hopes of finding a better light at the end of the tunnel.

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It's the volatility that makes crypto such a risky game, still you can come out of top if you have patience and a calm head.

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