Steemit Crypto Academy Contest / S14W2 - Volatility in cryptocurrencies

Good evening friends, volatility and crypto currency work one in one because, one major difference between crypto currency and Fiat currencies is that crypto currencies are really volatile while fiat is less volatile.

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In your own words, how does volatility affect cryptocurrencies? Is it beneficial or detrimental

In my understand volatility can be defined as a pressure that determines how fast crypto asasset or an other asset move or change a price in a period of time which could be triggered by so many factors which are either internal and external factors.

Volatility is a very important feature in the crypto market infactone major difference between cryptocurrency and nd fiat currency, the volatility of cryptocurrency is what makes it very powerful and at the same time very dangerous to those with you or lower experience or technical skills to easily predict the crypto trend.

Every crypto trader is expected to understand the volatility nature of cryptocurrency and all it related assets because the volatility affect the movement of crypto asset currently and also the movement of crypto asset in the future, volatility in crypto market is one basic reason why so much profit can be made in a short period of time and large loss could also be experienced in a very short period of time.

As you can see recently in the crypto market we experienced a crypto bullish movement which was as a result of a trending crypto ETF news,, we saw Bitcoin with high volatility in a new high high, This Bitcoin volatile movements kept so many traders in profit why others who shorrt Bitcoin went to liquidation or losses.

If they volatility comes with an uptrend movement the profit generated for long traders could be really massive, while is the Volatility comes with a downtrend most coins asset asset might lose so much value than you could ever recover from, there are so many reasons for volatility such as crypto news,new big whales and new crypto listings.

So therefore in conclusion volatility is both beneficial or detrimental to traders because if used properly could generate massive profit to traders, while if ignored or underestimated could dry a trader account because of so much loss.

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Name and describe a technical indicator that measures the market volatility of an asset.

There are so many types of volatile based indicators in the crypto market namely Bollinger Bands, Average True Range (ATR), Keltner Channels (KC) and Donchian Trend my favorite always remins Bollinger bands indicator, initially i used to call it Bolling band indicator 😂😂.
I love this indicator because it's really easy to understand and implement. Also with quality skills you can easily detect an overbought and oversold in period of time.

To the best of my knowledge, these volatile indicators, as I previously stated, may easily suggest the optimal time to place your trade, whether a buy or sell order, this signal are based on the Volatility of they market. The indicator has tree awsome three lines, The first is known as the upper band which it is used to determine when an volatility influenced overbought has occurred in a trade or in a market. In most circumstances, anytime the price movement exeede this upper band then traders should expect a trend reversal. As you can see from the indicator, Simply give us a sell signal, and we will choose the ideal time to sell your asset currency.

The second line serves as a base line to support the upper and lower bands; its famously called a SMA (Simple Moving Average) because it also help analyze the price of an asset; and the third line, also known as the lower band, functions similarly to the upper band. When the chat passes the lower band, there is a good likelihood that it is oversold, which is the greatest opportunity to buy an asset to profit.

As you can see in the discussion, there is a probability of reversal everytime the top bound or lower bound band is crossed. I marked overbought with white arrow and marked oversold with yellow 🟡 arrow.

As seen in the image below, when the upper band line and lower band line is seen in a compress manner, the price of the asset remains stable, however when the upper band line and lower bands line starts expanding the price of the asset starts moving volatile extremely either upward trend or downward trend.

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Describe the step-by-step to be able to include this indicator in the STEEM/USDT chart. You can use the Tradingview platform. Show screenshots.

I have been writing about Bollinger bands indicators so therefore I would still show you how to add Bollinger bands indicators on your crypto chart. Below 👇 I would tell you easier and faster way to add Bollinger bands indicator

Step 1: You would need to sign up if you don't have account on Tradingview but if you have an account then easily log in by inputting your logging details.

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Step 2: Download and open your Tradingview application on your either an application or the website. Search for the STEEM/USDT trading pair using the search bar at the top of the screen.

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Step 3: Still at the top you would see "Indicator", click it to search and select Bollinger bands indicators as I did below.

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Step 4: They indicator has been added on the crypto chart for steem/usdt pair, as you can see it is really easy and lovely to add

As you can see both the upper band, lower band and middle Simple Moving Average can easily be seen on my chart, making it very easy to analyze the crypto chart over a period of time.

Note: It is advised to use more than one indicator while analysing the crypto market, this would improve it accurate drastically. I used only one because it is for educational purposes.

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Explain in your own words, what happened to the volatility in the last month of the STEEM/USDT chart.

To my understanding the crypto market most especially steem crypto asset has been experiencing volatility in high range, using my indicator I could see that from the past 1 month Steem has really been very volatile but before then, that's to say before the 1 month range it the price of steem and its movement on the market was really less volatile , this resulted to the price of steem was quite stable.

From the chat you could say that from my one month range calculation that price of steemit was either going upward or downward, this might sound scary but it made so many turn into billionaire. This movement brings a lot of opportunities to traders so the could grow their financial account faster an better.

This volatility on steem asset caused the new price on steemit that's to say the price of steam to grew at least 70% of it's original price. The Volatility was high and risky but steem withstoods it's and is currently attracting more investors into it's ecosystem and i hope to see more upward volatility.

In conclusion the Volatility of steem was beneficial to the Blockchain, this is because they volatility was moving upward, so therefore causing the Steem price to move forward to a new high high of around 0.26 dollar per steem.

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Do you think the future of cryptocurrencies is more stable? Give your own opinion.

As we all know one prediction that is hard to predict is that of cryptocurrency and that is because there are always new update, new technology and new innovations that contribute and alter the future of any crypto currency at any point of time. But one thing for sure is that they crypto ecosystem would definitely grow to become a very famous powerful and attractive industry wee are so many investors would come running into to place a investment.

To be sincere with you I don't understand why we should talk on about a stable future for cryptocurrency, my reasons are numerals but first on the list would be I don't think cryptocurrency who would beneficial interesting and lovely as it is now if it turns out to become stable. And that is why in the crypto market they were volatile coins and they are stable coins.

The only coin that we should expect or try your best to make stable in the future should be the stable coins like usdt and other US dollar pays crypto asset, left for me I would prefer that the volatile coins like Bitcoin meme coins or hot coins should remain volatile in the future I trust me this would attract more investors into the crypto market

If I'm too predict the price of movement of crypto asset in the crypto market I would say that in the future the crypto market would remain very volatile, I believe it would move very volatile next year . This is because its of the trending ETF news and the next year Bitcoin halving news, in the nearest future the Volatility would either go upward or downward.

In conclusion to this topic I would say that I believe in the future stable coins would sustain that stability by remaining pegged to US dollars and they might be new stable coins that would want to compete with the famous USDT . While for a volatile coins like Bitcoin, Ethereum Steem etc. would continue moving with volatility in its future price or trends in the crypto market.

Note: It's just my prediction , so therefore its not 100% accurate. So I would advise you m byake your own analysis before using my prediction.

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In Conclusion

In conclusion I will say that this indicates all a very easy to understand and I one of the best volatile based indicators in the crypto market, this is because they are high chances of making profitable returns when using this indicator.

I have said this before and I will say it again add order indicators to Bollinger bands indicators when predicting or analyzing a crypto asset in the market, this is because only one indicator would give you a very poor analysis so therefore add more than one indicators but not too much so help improve your chances of getting positive signals

_{I am inviting my friends @hamzayousafzai @slon21veka @sachin08 @yancar}