Bitcoin Forum

One of the undeniable features of BTC is price Volatility. When the market is green, a trader can run into massive profits. However, on a bad day ones Portfolio can varnish within hours. My question, is the price volatility of BTC more of an advantage than disadvantage to traders?

Simple answer is don’t day trade. Nobody ever lost any money if they can hold their bitcoin medium to long term (4 years or more). Stop obsessing with the current bitcoin price & getting stressed about short term price movements. Look at bitcoin as a way to make life changing money, you need patience if you are a noob now.

You might wanna read the first post again.



From my very limited trading experience (I was horrendous at it so I simply stopped few years ago) I would say that BTC volatiliy is an advantage to the experienced traders and that volatility is what brought stock traders into crypto after all. Then again, I know IRL very experienced stock trader (30+ years), and he told me that he simply doesn't have nerves for crypto trading, even though he invested some via Grayscale (he is also too afraid to hodl his own BTC lol).

By the way, this topic looks more like a material for Speculation board.

The lower volatility, the higher the leverage you can use.

If you're trading bitcoin without leverage, it is a bit like trading forex on 10x. It makes it a safer asset to hold in that sense for the potential it can offer in profits without a potential 10% drop that'd liquidate the forex position.

I think instead of the volatility being a good thing, the volume is a better way for determining whether something is good to trade/hold. Strong volume gives good liquidity as well as making the market less manipulatable from individuals.

Volatility is good but not that much that we see with BTC as it is a deterrent for everyday users. Market makers and traders do need volatility in order to speculate bu tthe great volatility we see is definitely a disadvantage. It keeps people away from entering the market because they could lose great amounts.

It depends upon the traders, particularly the action taken based on his observation or based on market volatility decides whether the volatility is advantageous or disadvantage to the trader.

This is something a luck factor, because with the previous crash from the ATH value more traders praised Elon Musk, because they've sold at the peak and has got an opportunity to buy low. The same hasn't happened with every trader. So it depends between traders. As an user mentioned volatility is advantageous if you're into long term holding and not in day trading.

Imagine the price bring flat, 1 btc =32000 for now on for 6 months!
What are you going to trade? It will be like trading saudi riyals to USD, (the riyal is pegged at a fix value to the USD), how and why would you do this since there is no way to gain anything? Great volatile means both better gains and bigger losses,if you don't know what you're doing stick to forex markets where 5% a day comes once a year.

The way you're describing trading as gaining only when the market and is green and losing when it's red makes me think you would be better with just holding, an experienced and also lucy trader should be able to make profits no matter how the market is going.

I guess it is yes because volatility will make you profit when the price of the market suddenly up and later on will down which is a good sign to buy back again. Volatility is a very risky part, expert traders should always have their own analysis and strategies on how to read the market movement. If you don't know how to manage volatility in the crypto market, it will create a sudden loss.

Through the volatility, all coin's prices will fluctuate so many times, and when the price drop, you can also check your own or invest again instead.

For those who want to have a profit from trading, volatility is surely important. For those who want to use it as a currency, it's not. So, volatility becomes advantage only for those who see it as an advantage and disadvantage by those who aren't interested in getting richer in the short term. When I want to make a purchase and I see that Bitcoin dropped to €27k this morning, I'll choose to wait and see if I can spend less sats tomorrow.

To answer your question, if you're a trader you have no reasons not to prefer these high fluctuations in the price.

Yes, if you are a trader, even if the market is in red position, you can find a way how to gain profit. Even if you are not an expert trader, just a regular trader, you will find ways on how to take advantage of the market. A good trader will see green and red markets as both opportunities to earn. But how? It is up to the trader, how he will put those skills into action. If you know how to take advantage of this volatility feature, you can face all types of market. You don't need to wait for the market to be in bullish run.

It had more advantage over a disadvantage.We can sell at any point.Even at high price or at the less price.It doesn't matter.But sell at the needed time.It mean,you need to sell.If you feel,the price will going to decrease.You should do the stoploss process.It will help you to avoid of loss.Then the market down to the low value,you should buy at that time.

Isn't bitcoin or crypto currencies being very volatile is what stopping people or making business hesitate to accept crypto currencies directly?  In case of using crypto currencies as a regular currency, this is actually a disadvantage. Now you might argue, why not use stable coins? Stable coins has their own issues like centralization.
In case of trading, I would say high volatility is still a disadvantage because people would then have to bet on the coins to rise or fall and it would become more speculative. Like one of the users said over here, volume is what matters most.

It is as you are saying bitcoin's volatility is good in a lot of ways, it allows traders to earn money from buying when the price is low and selling when the price goes up, for normal person who is not trading it it does cause much of an issue that is if you are sure about your investment and you went into investing in bitcoin for the long term.

Volatility is not only good but also bad. Hence, it is really crucial to make the right moves at the right time. I know that it is not easy to predict also. We examine the movements of the price and then make a decision. We may feel like we are comfortable. But BTC price can surprise us at any time. If we manage to turn it into an advantage, then we are really lucky. Otherwise, we may lose a lot of money also.

To me, it is both. BTC volatility as an advantage gives investors returns, since it isn't a stable coin and isn't tied to anything, it fluctuates in it's own way (for good in this concept). On the other hand, it can be a disadvantage when You See your portfolio going down. Imagine those who bought when the price was $60K, not only that, it can be a disadvantage to other cryptocurrency and the market as a whole (example; what we are facing today).

So, I think there's an equality when we talk of which side is more, it is not good, yet it is not bad.

You predicted me very well. I just hold for some months and cash out profit. But I believe I am not doing the right thing. I should be able to learn how to make money on either side of the market.

Well, from what I do know, price volatility is what makes crypto market stands out from other markets. For example, forex and stocks have more volume and market capitalization but they lack volatility which is something crypto markets have in abundance and I feel its a very distinct feature for crypto market which I really like and I'm sure a lot of people do too. For anyone, who doesn't like how the volatility works, they should recall having those juicy gains from that crypto trades or investments.
 
To make money on either side of the market, you've to study how to apply leverages. Trading futures with leverages gives you the ability to trade with side of the market as a bull or bear. You're either shorting (selling) or buying. With spot, you're just stuck with the good old "buy and hold strategy".

Advantage to me.

But it's also acceptable when someone says that it's a disadvantage to them but before they invest in bitcoin, they should be aware that it's very volatile.

So whoever invests on it, do have an idea how volatile it is. When the market is red, it's time to buy and many forgets about it and only looks to how bad they feel during this time.

For experienced traders, the high volatility of the cryptocurrency market is certainly very attractive, as it allows high profits. At the same time, because of this feature, states are not very keen on legalizing cryptocurrency, considering it a too risky financial asset. Also, because of this feature, a decentralized cryptocurrency can only circulate in our society along with the national money of states. However, in general, cryptocurrency increases our right to choose, we can use different markets depending on our goals and capabilities.

if I personally are new to bitcoin, I dare say yes. By many experts, volatility is considered one of the most important information indicators for a decision about opening or closing an asset's position. from October 2017 to January 2018, Bitcoin price volatility reached nearly eight percent. This is more than double the volatility of Bitcoin in the 30 day period ending January 15, 2020.

I mean without volatility, Bitcoin wouldn't even be a haven for better traders to profit and a hell for bad traders. People trade Bitcoin because it's profitable, and it's profitable due to how volatile it is. With a swerve in an hour, shorters could earn a lot of money depending on when they entered and the amount they entered. Volatility means more chances to profit but there's always a negative for that, which is more chances to lose out. It's give and take when it comes to probability, 50/50 always. If you were gawking about how losing money in trading is but proud that you earned money, that isn't even trading, that's being entitled thinking that you should be given the right to profit always in trading even of all places.

Volatility is a feature of BTC which cannot be eliminated. You can look at it from a different angles but it's always gonna be with BTC. I see it more like an advantage.

Bitcoin is a long-term development of value currency, as everyone knows.
The volatility of prices is unknown to traders. Everyone will only predict part of it and not predict the time accurately. Volatility affects traders. Some are good and some are bad. Everyone will not always succeed in predicting the results.

Someone who trades futures can earn from bitcoin's pump or dump so it's an advantage to them and to me, cause tbh what makes the crypto market really interesting is the fact that the price of any coin can go up 100x or do the opposite, the volatility makes the crypto market a fun but risky place to play in, if I wanted something stable I wouldn't be here I would have been busy stacking fiat, I see the volatility of bitcoin as an advantage not the other way round.

volatility brings profit or loss, it depends on the ability of each individual. For those who can analyze the market, of course, volatility is an opportunity to make a profit, with a number of analyzes using the available indicators, it can be used to determine the direction of price developments. while for those who do not have market analysis skills, the unpredictable high price changes will actually frighten them.

well, some like a challenge, and some don't. Understanding market analysis and participating in the waves of volatility is one way to make a profit in the crypto world. there are many strategies that can be used, learn ... and find the strategy that best suits your abilities

For a trader, volatility is a mean and this will really influence that trader to take profits or not. With volatility, traders can get profits if they really know how to trade. The volatility is commonly utilized by mostly the day-trade. But it can also be used by a short-term investor or trader. We may not be able to do a day-trade, but we can still utilize the volatility to take the profits in a short term, not daily. The way is by reading and analyzing the volatility, chart, and also price difference is the certain time frame.

However, volatility may not give really big impact to a holder, Once they decide to hold the Bitcoin for a long-term investment, it will not be a matter anymore.

In the past ten years, Bitcoin has developed and grown a lot. For us investors, compared with some traditional assets or gold, Bitcoin can bring us more substantial returns.
Due to the volatility of Bitcoin, many investors may not be able to withstand such high risks, but volatility is the uniqueness of Bitcoin. Although market fluctuations will cause the price of Bitcoin to drop significantly in a short period of time, it also ensures that the price of Bitcoin will not be limited to horizontal fluctuations for too long.

to me its both sides but you can always counter the disadvantage with take profit when market is green and buy when market is down, volatility not just happen in crypto but it happen on gold and stock even not high as bitcoin. when asset price high volatility alwasy come to play.

With the increase of Bitcoin enthusiasts, there are more and more people using Bitcoin, the transaction volume is also increasing, and the scope of application is also expanding. Bitcoin itself is a highly volatile asset. Like gold, Bitcoin's market value is driven by consensus. As a trader, you can obtain considerable profits in some fluctuations. Volatility is naturally an advantage.

volatility is not a feature of Bitcoin, it's just the many are speculating the currency and many will buy because of its rarity and people will also sell because of the enormity of the profit. if you are a trader you will look at it mostly as an advantage but if you are a holder you will be regretful if you are not going to sell before a bear market. therefore a disadvantage only if you don't profit.

the long-term holders though are confident of buying more which they don't see volatility as a disadvantage.

Bitcoins volatility has bot advantages and disadvantages and these depend on who you are.

As an experienced trader or one who knows what you are doing volatility can enable you to
make profits.

If you are an inexperienced trader volatility can work against you.

Prom a non trading point of view volatility allows us to "Buy the Dips" and to DCA
(Dollar cost average)

Volatility also offers those opposed to Bitcoin opportunities to attack it and create FUD,
this as we know is futile, they think its an advantage but we know its their disadvantage.

I see volatility as a manageable opportunity to recover losses or to make some profit. So, say you bought when the price was high, then you just have to wait for the price to spike to make some profit... but if you were forced to sell at a low price.. then you can have a opportunity to get back in on the low price to recover your losses.. when the price spike again.

In affect... if you manage volatility to your advantage and you do not look at short-term gains... then Bitcoin volatility can be used to help you to manage the risk. (Do not sell early / be willing to wait / Do not panic / Get in low / Do not get greedy by selling too late)  ;)

                                                    Manage the Risk of Bitcoin volatility to favor you!

I don't know whether anyone really benefits from an increase in volatility. You can argue that the traders benefit from it, but I don't agree. In trading you only benefit if someone else is losing on the other side. And I have talked to a few traders recently and it is a mixed situation, with a few having suffered crippling losses during the last few months. In all the other sectors, a high volatility rate is not preferable. The merchants suffer losses, if they accept direct payments in BTC and the exchange rate goes down by 10% or 20% in a day. Those who receive their salaries in Bitcoin also face the same issue.

The huge price volatility of Bitcoin also represents the vitality of Bitcoin and the frequency of continuous change of hands. In a sense, this is a manifestation of healthy development. Some people see it as a huge risk. I think it is a test of whether Bitcoin holders have Bitcoin beliefs. Bitcoin's volatility largely represents the sentiment of the Bitcoin market, and it also complies with Pareto's law. Don't panic, long-term holding is correct.

whether btc's volatility is more of an advantage than a loss, in my opinion you can say yes.. throughout this week, the price of Bitcoin is still up about 6 percent along with the tug of war between sellers and buyers in the market. A report from the Skew crypto market analysis agency stated that Bitcoin's volatility level remains high even though the price level has stabilized since mid-May.

Bitcoin volatility is added advantage to the bitcoin as compared to other coin. By using the volatile of the coin, we can huge money from the bitcoin.Use both the market to get a profit. Buy at dump and sell at pump is the way to earn repeated profit in a same day in cryptocurrency including bitcoin.

For me, it's more of an advantage because with the volatility, you can always get in anytime you want since the prices go up and down plus, it's helpful that the market is volatile so it can't be manipulated since no one can totally control the market due to volatility. Another reason is that it can help you filter out people that are in it for the long run and those that are for the quick cash.

It's easy to say buy at the dump and sell at the pump. but in real terms the mental will continue to play out while trading. The huge volatility of bitcoin keeps the price from fluctuating. It could be a big advantage and also a very big loss. Do not always be tempted by big profits, pay attention to the risks that will occur.

profit and loss in trading is certain, it's just a matter of how we can manage it well by optimizing profits and minimizing losses.

Price stagnation is close to impossible from happening because an active market will always have a fluctuation no matter how stable we declare it is, look at forex, the prices there are stable but the prices are still moving up and down because there's an activity in the market for them, I think a market will only stagnate when no one trades there so basically the market of that is already in shambles. Yes bitcoin's volatility is more of an advantage than disadvantage because the volatility makes it fair for everyone in the market and that anyone can still get in even if the price of bitcoin goes up but since there's volatility, they get to get in at lower prices.

Bitcoin volatility will play an important role in determining price movements in the short term.

The high volatility of the cryptocurrency market is attractive to traders and has great potential. Many traders will gain more benefits by analyzing market volatility trends.

At the moment, I have to say it's only advantageous to speculators and market makers/takers. Which, for better or for worse, is what the majority of people's involvement in Bitcoin is.

People complain about volatility but as soon as bitcoin becomes stable, people will stop trading it.

I think the beauty would be within the eye of the beholder this case. For example, many traders here within the community came first from, forex, and most likely from the traditional stock markets, etc.
The crypto markets are 24/7 while traditionally, markets are closer to being a 9-5, Monday - Friday (depends on time zone) type of scenario. Those guys are here for either the volatility, the future utility, (or both), and the serenity and sovereignty that Cryptocurrency provide.
  So in my humble opinion, I think the Volatility is a double edged sword. A gift and a curse. The volatility is a Sword of Damocles, Many leverage it all on the volatility hoping to moon, but end up catching a falling knife (liquidation) that was hanging by a single thread of volatility.  8)

is btc's volatility more of an advantage than a disadvantage,?? you can say yes, because if we are patient in investing bitcoin, we will most likely get profits, many people experience losses because they are never patient, when prices fall, in a few months and there are negative posts about bitcoin, they are afraid , and they immediately resell their bitcoins, in the end they also experience big losses..

For me, it actually depends on how good you are as a trader.

It is an advantage to those pro traders with years of experience in trading industry not only in crypto but outside crypto. And it is a disadvantage to those who don't have a lot of experience or let's say newbies that are starting to learn. And also, it depends on what kind of a trader are you, either a swing, position, or a day trader. It depends to the person who trades.

To bad for people who doesn't have any experience since mostly they are the one who get burned if market goes downside that's why to overcome this they should learn on how to trade properly so that they can somehow see some potential about the volatility of the market and threat it as their advantages. It's hard to master this things but for sure once we learn and became a experience trader for sure we will see a good opportunity when market drops badly and we will not think about bad on it since we always think about good advantages when market moves.

Volatility is market-specific and not unique to bitcoin. This is both a profit and a risk point. What matters is one's plan and understanding of each trend. Trading has absolutely no control over the odds of winning, no one can claim that. It is best that you use your strengths to make the odds of winning more than the disadvantage. It was a great success.

Volatility is good opportunity for traders to buy at low and sell at high and this is how you generate profit. Professioanl traders make profit out of it by using Technical charts and Money/Risk managment skills. When Market is highly volatile like Bitcoin then it is important to use stop loss or you will lose all your invested capital and take buying and selling positions when Technical charts generate strong buying/selling calls.

It depends, sometimes it’s an advantage and sometimes it’s a disadvantage. It all goes down to what you’re using it for. Like you said, when the market goes green and increases in value, it’s an advantage for a lot of people as they are able to make profit from the market. And when it goes down, that becomes a disadvantage since a lot of people ends up losing their money. That aside, I know people that wants to use bitcoin mostly as a method of transaction, but since it is volatile, they find it hard to use it, because they fear they will lose their money when they do.

We make good earnings from fluctuations. We can earn profit by honing our management skills. If there are no fluctuations in the market, there will not be so many earnings. We can buy from below and sell the top. If the market is more panicking, we should make sure to use stop-loss We don't always succeed in doing all this but two of our three trades hopefully give good earnings in fluctuations.

It will depend on the investor's timing. The volatility often mark a detrimental effect on your certain holding since most of the time these days, the value goes down than it goes high. But once you are able to find the right timing on selling, you will learn how beneficial the volatility can be like for example, you bought some of your investment for a low price but after holding for a long while, a bull run takes place and you can sell it in a higher price. Just learn to be patient and always make sure that your decision making is not affected by your emotions for it usually leads you to mistakes which you'll later on regret.

Day traders who have a deep understanding of the market, of course they will take advantage of the volatility of bitcoin, and usually they use technical analysis strategies, chart patterns and market indicators to identify trades to avoid losses, so I think volatility will be more profitable for traders, if they have understanding of market movements.

well this goes for both ways , it increases greed index and most people love this volatility but at the same time most of us get rekt . i think it is better for whales and lucky ones .

- You don't need years of experience and live like a pro to turn volatility to your advantage, just accepting the most basic ambitions and not going too far on that path is enough to be safe, and the newbie doesn't have to be disadvantaged as long as he is a good boy and knows the high mountains are beyond his limits, his range of activities is not at the top of the mountain, where he needs to study is the foothills with many others there. However, perhaps the disease of hearing loss and being too arrogant about talent was a common ailment

From my point of view, it's neither. The existence of volatility in bitcoin price is a natural state of affairs, this process is inevitable given the openness of the ecosystem of bitcoin. People are completely free to join and participate in this game: there is no regulator in this space who can dictate how buyers and sellers should behave. All individuals have their own expectations, beliefs, biases, the level of financial literacy, and they trade and make decisions in accordance with them. It is no advantage nor disadvantage. That is how things should work in a free market. Volatility is chaos, but there is no order without chaos.

As long as you can manage your greed, you will not have a problem and even you will have a big chance to take profit from the volatility because you can see when the time to buy and sell. If you can repeatedly do that, your profit will be bigger and that means you will make a lot of money from trading and have a chance to hold for some amount for the future. I think people can use the chance like what the whales did because they can have their opportunity to make money too.

Bitcoin's volatility has certain advantages for short-term transactions. When the price of Bitcoin changes, buying low and selling high will result in higher income.
 
But for most Bitcoin users to collect, price volatility has an adverse effect on them. When the price of Bitcoin falls, they will panic the market, may blindly buy and sell, and eventually cause greater losses.
 

Even Bitcoin traders always look forward to it volatility which is more advantageous because the price will move quickly to take profit if they long trade in a bullish uptrending and short trade in a bearish downtrending, thus volatility is always traders delight, that is what makes the money, however inexperienced traders or investors can get liquidated in a jiffy losing the whole portfolio, which some people might said it is an disadvantage of volatility of  Bitcoin which I totally disagree with that notion,

This question is subjective because different investors or traders have different experiences and outcomes when it comes to riding the volatility of crypto.
Some will say that volatility is an advantage for them because they gained profit because of it but on the other hand, some will say it is a disadvantage too because they lose most of their money because of it.

Simple, if you are losing in trading then just hold and be patient and with that Bitcoin will be an advantage to you because you will gain profit maybe not in the short term especially when you bought it at the peak price or near to it but in a few years of holding you will gain profit because of volatility.

Volatility is what move the market whether to bullish trend or bearish trend. The market needs volatility for it to move which us characterized by the percentage of buy pool and sell pool. If the number of buy pool is greater than the sell pool, then the market is going to buy forming a bullish trend moving in a higher high and higher low patterns.

When the number of sell pool is greater than the buy pool, then the market is going to sell forming a lower high and lower low patterns making a Bearish trend. This is why risk management is a good tools in trading which can reduce the amount of loses one can make in the market if price volatility eventually turn against one.

It's an advantage, that's why I am still in the market because I can sell anytime and get profit and wait for the price to go down again and then buy back again to hopefully get in the market again and wait for bitcoin to go up again. If you know how to work around the volatility, you will not have any problem and will always think of bitcoin's volatility as an advantage.

It's not an advantage, you ask someone why they won't adopt Bitcoin and volatility is one of the more popular reasons, among others.

You can't make the case to someone in the lower class that they should adopt a currency that might lose 20 percent of its value over night after a speculative bubble crash.

You can make the argument that fiat currencies lose a "flat rate" of its by virtue of its own existence of around 2-3 percent a year at least, which is the numbers set by the central banks, so it's more stable. Although, this doesn't take into account the risk of elevated inflation or hyper inflation - point being, the loss of value with fiat is more or less guaranteed, while crypto is difficult to predict.