Bitcoin Forum

Volatility is part of what defines Bitcoin and some other cryptocurrencies. As the industry matures, the rise of cryptocurrencies that tracks the performance of less volatile traditional assets like real estates and commodities will likely bring a lot of beauty to the cryptocurrency industry. I believe that a mix of more volatile crypto assets and less volatile assets will give traders a lot of options to enjoy while trading.

I almost got confused with your topic, I thought you want to give disadvantages about volatility, well volatility is what makes crypto make sense, it give rooms for new comers a.k.a investors, when price falls it becomes an opportunity for new investors to jump in

In crypto industry both stable coins and volatile coins are available in the market. So peoples are trade the volatile cryptocurrency because If you trying to make risk it will make profit or loss so good prediction and analysing is important for all the investment. Nowadays all are concentrate the Bitcoin, Ethereum and BNB because minimum three coins is important to buy and hold for trading. I hope active traders always make profit in crypto trading.

And where is this going?

Promoting bitcoin while on the other hand promote USDT and other stable coins?
Is that what you meant?
To have balance?

Bitcoin may be volatile now and same goes with Ethereum but someday in the future it will all change.
It's because of different views and usage of people.

Obviously volatility, till now is what is a unique feature of crypto market till now and it is what differentiates it from other markets but i agree with you that as soon as crypto markets volume grows into trillions and we have institutions and sophisticated traders and investors on board this type of volatility will no more be there so we are the ones who are in this early so we should enjoy this experience.

Volatility is the hallmark of crypto market and i personally know many forex traders that are attracted to crypto markets just because of volatility so whenever they feel that forex market is slow or there is no volatility they switch to crypto and they always find good opportunities in crypto pairs, i do not think crypto volatility will go away anytime soon, it would take many many years for the market to come into a stable state.

We always have the option to choose the best investments that we can stay for short or long time. In the future, there are hearsays that crypto will become less volatile as it grows together with those traditional assets and investments that we have.
Which is somehow hard to believe until we see it that it has become a less volatile asset. But, as long as we're not seeing it, we can count on it as the one of the most volatile assets currently.

Volatility is what defines bitcoin if it will always be about the money and profit.
So how will it be a considered a currency someday if we always look at the conversion of our profit with our own fiat currency.
It doesn't give room to new investors but mostly traders.
Short term investors maybe but those who will stay for long is not thinking much about the price of it.
It is more about the value.

Crypto volaitility is great for day and active traders especially who like to trade on the basis of charts, candlestick patterns, technical analysis and price action. Volatility helps the price action traders to make better trading decisions and hence they can derive more profit due to volatility.

True, volatility does define bitcoin when it comes to thinking about money and profit, but so does scarcity. Bitcoin has its high value because it is scarce and has high demand compared to other coins. The volatility is profitable for those who makes short term investment, but the scarcity is for those that are planning in for making a long term investment. So, doesn't that mean it still have room for new investors as they can always make profit  in the long run no matter when they invest?

Cryptos are not meant for trading and creating less volatile cryptos means? stable coins?

Stable coins are centralized so which isn't a cryptos then decentralized crypto will be less volatile of highly volatile depends on the people using it.

I don't think so.  Not everyone are having fun with volatility not unless if you belong with the whales.
Volatility is the reason why others give up and why others are scammers.

yes, maybe thats what the OP think about crypto market
but remember, this volatility will bring a good profits for the smart traders but not a greedy traders because market can go down hard anytime

It caused by the volatility is the main key for the traders to generate profit. The asset that backed by a commodity or real estate will be less volatile caused by it has a real value and that's very different with the speculation asset that didn't back by the commodity

Volatility is good because it is the reason why traders and even holders do not lost hope in crypto that one of these days, they can make huge profits again. But it will be the reason too why most of the greedy traders lose their money in just all of a sudden because the market has suddenly dumped.

If you're going to look closely, altcoin market is more volatile than bitcoin, believed me.


I didn't get your second point here, there could be investors from other industries like you mentioned are going full crypto now. Maybe because there'a a lot of money to be made here, or they just simply wanted to diversify their portfolio, which is a good practice. But I do hope that those investors are going to pick bitcoin or some altcoins that has strong support and good marketcap instead of shitcoins.

Two major factors or areas that astute traders look for when investing in crypto are, ability to make swift and big profit fro crypto, as well as the ability to hedge when thee crypto market seems unfavourable. Therefore, the volatile nature of cryptocurrency has its own merits and demerits and with the integration of less volatile assets, it means that hedging won't be a problem and one of the most interesting things when it comes to ventures like this is diversification.

No volatility and no profit. volatility is the main thing in the speculation market to give everyone the possibilities to make a few bucks from the market. The greediness of traders is a side factor as long as the traders can manage it and they will be fine.

There are advantages and disadvantages of volatility, the advantages are you can make a profit out of it when you know when to buy and when to sell, timing is everything in a highly volatile market, but you can lose everything you've got if you made a mistake of picking the wrong investment, that is why we need to invest what we can afford to lose.

Investors are currently fighting over three coins because the prospect of these coins has a positive impact on short-term and long-term investments and also on the movement of the cryptocurrency market.

For traders, price volatility is a way to get profit, if the price is stagnant, profit difficult to achieve. So I think we need to know various sciences to read charts when prices fluctuate in order to minimize losses, with technical and fundamental analysis.

I have two of the three assets. I used to have all three, but the ethereum conditions continued to decline and poor movement. I sell it to have more BTC in the bag. now I am more focused on BTC and BNB in ​​the market.

As I understand with your statement, volatility gave to all traders a chance to earn good or bad. Depending on the skills or understanding of the individual's traders here in this industry. So, volatility was the main reason why most of the person like to get in here because they knew that getting profit here is much faster than the other things in my opinion.

this market really contain high risk  if we have no good knowledge in cryptocurrency trading. we will face same condition on 2018 which is much traders and investors trapped in FOMO. mostly beginner investors thinking bitcoin or other cryptocurrency could give instant profits, meanwhile actually too many FUD in market which is make investors psychology drop alot.

It is good when you are about to buy, without crypto volatility many people won't have the chance to get in at a good price, I believe this is the nature of the market too, because there is no way the market will keep rising without any correction, but sometimes volatility can cause a lot of panic, when people see price going down from what they buy they panic and sell, volatility has good and bad side.

Having volatility is good because that allows us to buy and sell from the differences in the price so that we can profit from that. That is our job to search the right time to buy and sell the coin, and if you can learn more about analysis, you will see that chance. You don't have to buy and sell if you can not get the time to trade because that will be too risky for you if you force yourself to enter the market. You'd better wait for a while until the market situations can be able to analyze.

Wait, your statement is a bit redundant and conflict. You have already said that bitcoin and some other crypto coins are volatile. That is their special features that may have a good advantage for some investors and traders. More volatile + less volatile. It is still volatile. And traders will still enjoy the perks of profits from that unstable market. That's how cryptocurrency works.

we traders benefit from crypto conditions like that. no one regrets it and indeed from the start, crypto has price instability. if they love stability they can choose stable crypto assets. it is a choice that must be made.

Volatility makes cryptocurrency more popular and attractive, because it is not like traditional assets that are more stable.
Therefore, with cryptocurrency we can generate greater profits than traditional assets, but be careful of volatility can be
a big loss too. Then it takes an investment balance by not using our capital entirely in cryptocurrency. A good investment
must divide capital into several assets, investing in this way is safer.

First you talk about trading (which is speculation) and then you talk about investment (which is also speculation but long term). I think it is a bit of a mix up.

You want volatility in trading, but not in investment. That is how I always see it.

Yes, market volatility makes us lose sometimes but if you play it right then trading on a volatile market is quite fun because it gives us more earning opportunities. If you use SL on trades that will lower the risk of losing big on trade.

The volatility could be a great tool how to get high profits from trading, but it is a very dangerous tool for super skilled traders. Volatility could erase your account in few seconds especially when you trade with leverage, so be careful, crypto trading is more difficult than trading stocks or something else.

Volatility makes the cryptocurrency more exciting because it gives more thrill not only for investors and other crypto enthusiast to see that gonna happen in the next run of the market. It opens up a lot of opportunity as well, for other coins to be recognized as they are making a good run in such kind scenario, and for traders to exploit and gain some profits in a volatile market.

It can bring also profit to others when the price of any crypto currency they is always volatile. In a simple movement of crypto currency you can earn from 5-20% daily depend on the coins you are watching . This is not possible for other market you need to wait more longer if you want to earn that high percent profit in other market.

possible and hopefully, because now people are using bitcoin and crypto mostly as investment tools, and have not been realized as a form of payment, but at least there are already some people who use them for transactions even though they are few, but this will only be a matter of time. .

The main aim so many people joined in the cryptocurrency caused by crypto has already offered the volatility as its main thing. The volatility of crypto is getting changed easily and they get more opportunities to earn more money.
No volatility and crypto will not get any users.

lol cryptocurrency is for buying and selling and that's what all about trading is, buying and selling of coins. Less volatile crypto does not guarantee stable prices, there are less volatile crypto because of low activity in the market however with stable coins, either low or high involvement in activity of the market the price stays the same, in short stable.

The market is perfectly natural for me, use the volatile crypto to gain off the market and secure them using the less volatile or stable coins.

Sorry man, I can't get the point of this, can you elaborate?

The volatility of crypto is what defines it to the others. Crypto tends to become famous and known because of it's volatility. Imagine if crypto has a low volatility, How would the market be affected? It will drastically lower the cap. Why? because when the market is volatile it means the market is flexible? What does that mean? It means that the charts/price will more likely bounce all over the place support to resistance vice-versa. So this means that investors or newbies have a better chance on earning when they buy for low. Which leads in a great introduction to crypto.

That's why you need to learned reading situations, controlling your yourself as greed can penetrate and let you lose your investment, it's very important to know when to position your investment, volatile market if you misunderstood will surely harmed your money.

Making sure that you are fully equipped knowing when to enter and exit with your every position. Volatility can bring good benefits in a short span of time you just need to have a good preparations and strategies.

volatility, in any case, should disappear in the future, but this will not happen soon. in 5-10 years, trading will be the same as trading by traditional assets now. 5-10 percent profit per month maximum
 

crypto volatility is good for swing and quick traders .. but cant say thesame for holders.. because your 1000usd worth of cryptocurrencies can go down to 20usd in a matter of minutes.. and this is one of the most frightening characters of cryptocurrencies

Yes, that's why I never trade emotionally because if you trade emotionally you are bound to suffer a huge loss. I always keep an SL in my short term trades because they help us cut down the loss significantly.

Volatility is good if you are educated enough to see how the market moves, when is the right time to buy and when is the right time to exit, I have seen so many people making a killing while the market is in volatile, this is because these traders have followed the market continuously every detail of the market, volatility is very risky but profitable.

I think volatility is good for the cryptocurrency market as it gives many options for earning and attracts many traders. Still, you should never forget it is very risky to invest in crypto.

this is what makes crypto industry beautiful indeed. Your ability to stick with volatile cryptocurrencies or choose less volatile and more stable. It pretty much reflects how real world is right now.  There are people who prefer to choose stable coin although there aren't many but they are still there. I think people focus on more than three coins and stick with top 50-100 for the most part. Some people prefer to become more volatile in this industry and choose alts that are below 100 but that also increases your risk.

You said it volatility should disappear in the future but at the same time you will also say that will not happen soon. Your statement was contradicted between each other. Volatility will never disappear as it's a part of speculation market.

Volatility is good but people easily get rekt. Remove volatility from cryptocurrency market, then the market its no longer worth it we enjoy heavy gains and loss due to volatility I like to think that's what we need in this market give or take. If we have non volatile cryptocurrency assets, how do whales manipulate the market, how do we do an insane 1000% within a month hehe

What is the "but" here, OP?
I think that many options that can trader have is good as well.
Maybe you're trying to point out that because of volatility and plenty of options to trade, traders get confused and lose motivation to trade because they think that there is "too" much coin in cryptos that you'll never know what to invest first. I think this is what you're trying to point?

If it is, then start up with Bitcoin. If you can't decide to what to trade at, consider just holding it.

Volatility is good for the traders as they get chance to make money on either side of the market movement and also the profit can be made quickly but this also means the risk is much higher. Also, this is for the professional trader’s good thing who can spot the market movement and accordingly trade on it. But for normal just trading on the price without knowing the market direction will be a fatal.

It's right to say that volatility is the factor that helps traders earn profits out of the price fluctuations. However, I don't think a person who trades without knowing the market can earn profits in any circumstance! Therefore, those who need to be aware of the market volatility are the ones who don't know anything about the market and hesitate to learn!

People should understand the risk factors when dealing with a very volatile market like our market the Cryptocurrency, he should differentiate FOMO and hype and the true market sentiment, this is a part of the volatility that people are losing their money, it's good if you understand but risky if you rely on other people's decision.

As long as we can know how to minimize the risk, we can prevent the big loss in trading because whenever the price goes, we can anticipate and make a profit. That is why we need to keep learning from many sources so that we can add more knowledge and improve our trading skills. Once our skills improve, we will see another sign that will show in the market, and that can lead us to get the right time to trade.

USDT is not one of my favorite cryptos. By real asset-backed I don't mean dollar-backed, dollar is just another shit inflationary currency. I mean real-world asset-backed cryptos. There is not so much of this kind of crypto existing yet.

I understand that you are trying to mean those cryptos which are based on real estates and commodities will bring another layer of volatility to crypto trading even cryptos themselves mature toward less volatile nature, right? But, we need to understand that how volatility of gold is still persisting even after centuries of trading; I mean there cannot be any mature level for assets as new adopters will be ready to offer good prices which will again keep them to fluctuate :).

Some cryptos may find a relatively stable prices and may not forever. So, obviously we are going to have collection of all types of volatile crypto assets in our portfolio all the times. If you notice, all cryptos do not fluctuate all the times nor all do not fluctuate at a time. So, your portfolio will remain as mix of "everything".

Yes, it is all about skills. If you are skilled to work on risks then you will never see volatility as an unwanted thing of trading but you will be loving it. I have seen people complaining about range bounded markets how BTC is doing right now. Because, they want markets to go on different price ranges so that they could make profits rather then sticking between 2 price levels.

Yes volatility of the crypto space is something that will likely remain with us however we can only but find ways to limit and play around it. Even most projects which claims to offer less volatile assets ends up getting hit with reality that most of them died off if not all. Also, about non volatile or less volatile assets, they are there to help both traders and otherwise to put a limit on volatility which is the reason stablecoins like USDT keeps growing in their number of users. Therefore I think it's better to invest in good coins which regardless of volatility will still offer something massive in the near future.

I don't keep USDT or stable coin, this is because I don't get to benefit from volatility profit. One of the biggest financial benefit of Cryptocurrency is the volatility. It makes trading sweet and sour depending on your level of expertise.

That depends on how can someone manage it. Sometimes it can be a good opportunity to earn a lot of bucks instantly but in another case, so many people have experienced that if they were getting a big lost instantly too.
Speculation market is just like a game.

I am however not a fan of USDT, I am however interested in the rise of stable cryptocurrencies that are backed by real estate or some traditional commodity other than the dollar.

If they can know that bitcoin can go to any price without having a deal with them, they don't have to complain, but they need to prepare themselves for the change in the price. The importance of this matter is how they can analyze the market, so they will have guidance on where the market will go. Although the market is unpredictable, they can know the pattern if the price will go up or down, so they can prepare before it's happening.

it will benefit people who have the expertise to take advantage of the situation. all are choices that must be taken along with the risks. crypto that moves up and down in a short time will only be a potential for people who are experts in playing in the crypto market. for beginners, I think it would be very risky to lose money.

Even beginners can get big profits, if they guess right then they will get profit, So for beginners I think trading is no different from Gambling, They only hope for luck, not because of their expertise. So Volatile prices on Crypto can be beneficial for us, for beginners or professional traders.

I understand what you are trying to say but if you need a balanced volatility then you must opt to invest in the stock market rather than in the crypto market.
Crypto is relatively new, actually not so new these days though but still, this is why the volatility rate is big in crypto.
But as more number of people dive into the crypto market the supply will get distributed which will stabilise the market a little.
So I think the volatility rate will decrease as the crypto market matures and more number of people get involved in it.

It's rarely to see that and as far as i know there was a lot if altcoins have declared such idea but they were failed to make it becomes a real thing. There are some altcoins backed by the gold and silver too.

Yes you are right, the more choices the better this is inseparable from the study of market needs and demands now or in the future.

I think volatility is the beauty of crypto market as many investors have made millions of dollars on the big upswings, and yet many have lost their colossal investments in the sudden market downturns. Yes there are some cryptocurrencies which are very stable and are less volatile and people who are experts in making smart investments can earn massive profits.

Volatility is what makes cyptoworld exciting. It gives opportunity for new investors to invest whenever the price falls as well as to make a profit whenever price rises. Many traders are enjoying the volatility of the market to make a profit and to but more whenever they got the chance. Some people might not like to see this volatility because they are afraid that cyptos they are holding will not recover but the truth is that it only takes time for it to recover (most especially bitcoin).

The high volatility in crypto markets is actually a good thing as well as a bad thing. High volatility is a good thing because it offers investors more earning opportunities in a very short time, but likewise high volatility is a bad thing because it also offers investors the opportunity to lose money or finish their money in a very short time. Yes, it is good to have high volatility in cryptocurrency markets because it provides more earning potential than other markets, so investors prefer these markets and provide new money flow to the market. In addition, higher volatility and greater mobility affect large investors more. For these reasons, I think that the high volatility that is available in the cryptocurrency markets is neither very good nor literally a very bad thing.

Volatility is good if you understand how it works, what causes it and how to make a profit out of it, Volatile market is the playing field who understand how the market works and the condition was to make a profit, if you invest what you cannot afford to lose and you do not have enough knowledge, you are likely to lose a lot.

Yet most people invest in Bitcoin and other cryptocurrencies for trading and want to make money from it. So market volatility is an important regulator and it helps a trader to make a profit through trade. Some unskilled and inexperienced traders face losses due to the volatility, but in order to make a profit, you must acquire sufficient knowledge about trade and the ability to take risks. But if you think that cryptocurrency will become part of the worldwide daily transaction of every sector by achieving stability, then I can be sure that it will become stable when it becomes the medium of the always accepted transaction.

There can’t be anything as less volatile and more volatile. There are only volatile and stable coins, and you’ve got to choose one. Stable coins can’t be an option if you’re looking forward to making profit. If you’re scared of losing, then invest little money. Some experts will recommend that you invest about 5% to 10%.

It gets more risky when you’re trading too much of your capital, because you will be in a position of losing more money when things go negatively, than when you’re investing and trading a little money. And if you’re not perfectly skilled in crypto trading, Hodl will be a good alternative. Target when it runs down and hold it for a long time; already more than 50% of this community is doing that and makes good profits out of bitcoin's 4 year long cycle.

I quite agree with your humble opinion and that is what is really happening right now in the crypto space, a mix of volatile and less volatile(the so called stable assets) cryptocurrency are evolving in the crypto market. I believe that the mix will bring a reasonable balance to the crypto ecosystem

That's the main factor from crypto why people are very interesting to use crypto to trade in the market right now. It has nothing to do to rebalance the crypto ecosystem.

Volatility is something that is offered by crypto.

Crypto volatility is good if you know how to ride on it, it can give you good profit and for me it gives us excitement when it comes in trading. It is good because it gives us an opportunity to earn in just a short period of time but it can be reversed, you can loose your money too in just short period of time.

I wasn't actually referring to USDT or dollar-backed stablecoins. I am somewhat referring to cryptocurrencies backed by a real-world assets like real estate or commodities.

We have to learn to live with it, sometimes its not really nice for us and I know that you end up being sad about it plenty of times however it is also quite important to know that no matter how much you spend time on bitcoin you will see that volatility is not what causes you to lose money but the impatiences is.

Volatility could make it go up and down but at the end of the day you are going to lose money if you do not wait, let's say you bought at high but it went down, if you do not sell and wait the volatility we are talking about will cause it to go upside once again which is why I believe there is really no reason to blame volatility for the loss of money since it made it go back up as well but you sold when it was lower, if you waited it would have made you profit as well.