Crypto market is very volatile!

[Odat]

Hello people, although I’ve only been trading crypto currencies for about a month now, I have learnt a lot. I have made good money on the regular stock market many times but to be honest, my regular stock market profits(although good) are boring compared to what’s possible dealing crypto currencies.

What I don’t understand is what gives these coins their price other than basic supply and demand?. I just don’t get the fundamentals of this market. For example, what makes an Ethereum worth $1000?. How do you know that’s what it should be worth and not $500 for example?. Again, other than supply and demand.

I have about $10,000 invested so far and want to invest more but I’m always scared that I will wake up in the morning and find that the US has banned or is working on banning them and that will make the crypto market crash beyond repair. Even with the latest crash, I haven’t lost money yet but the market is too volatile. Too many inexperienced traders in the game trying to get rich. Although, I don’t mind taking risks, I don’t want to throw money either. To the people who have substantial amounts invested, how do you deal with the fear that this market is so volatile like and any major bad news could lead to you losing all your money. Definitely a very risky market compared to the regular stock market. Do you see this market lasting a few years without government interference?.

 Any insight would be appreciated

[joselitobayagbag]

Hello people, although I’ve only been trading crypto currencies for about a month now, I have learnt a lot. I have made good money on the regular stock market many times but to be honest, my regular stock market profits(although good) are boring compared to what’s possible dealing crypto currencies.

What I don’t understand is what gives these coins their price other than basic supply and demand?. I just don’t get the fundamentals of this market. For example, what makes an Ethereum worth $1000?. How do you know that’s what it should be worth and not $500 for example?. Again, other than supply and demand.

I have about $10,000 invested so far and want to invest more but I’m always scared that I will wake up in the morning and find that the US has banned or is working on banning them and that will make the crypto market crash beyond repair. Even with the latest crash, I haven’t lost money yet but the market is too volatile. Too many inexperienced traders in the game trying to get rich. Although, I don’t mind taking risks, I don’t want to throw money either. To the people who have substantial amounts invested, how do you deal with the fear that this market is so volatile like and any major bad news could lead to you losing all your money. Definitely a very risky market compared to the regular stock market. Do you see this market lasting a few years without government interference?.

 Any insight would be appreciated

Stockmarket cant be manipulated by someone,but crypto is,thats the downside of crypto you just need to be updated to the fundas to be able to catch up to what will market behaves,technical analysis doesnt work 100% here in cryptocurrencies because whales can easily manipulate a coin with small amount of BTC.

[Kakkles]

The crypto market is very volatile and for those comfortable riding the waves there i a lot of profit to be made from volatility.

[Odat]

The crypto market is very volatile and for those comfortable riding the waves there i a lot of profit to be made from volatility.

I don’t mind riding the waves but it’s hard riding a tsunami(government interference). That’s really my only fear. Volatility doesn’t bother me as like you said, that’s how you make good money.

[makuhpal]

Volatile market is very much heaven like for me,you should try to scalp and swing trade stategy this will make you rich faster.

[scoobidoobydu]

This is very true. This is the part will make you rich fast. (and poor fast).

[arunakiran]

since two two days crypto markets are so volatile, even in this volatile market also swing traders will capture the profits

[Arkangel]

Hey mate, first of all, you should always look at the market cap (supply X price per coin) instead of just coin price.

What defines the market cap of a coin is its utility. And for most coins nowadays, you can see it as the speculation around its potential utility in the future.

Ethereum for example is not just a coin, its a whole decentralized platform for smart contracts. There is an infinite number of applications that can be built on it.  That's why the demand for it is so high and then the price rises with it. What really makes it valuable is potential derived from its technology.

If you think about all the industries that can be completely transformed with ethereum, its market cap of 100 Billion doesn't seem that high.

And about the fear you mentioned, I just put in my mind that whatever the governments do about the crypto market, they will never be able to stop it.

Good luck on your investments ; )

[Queen12]

The whole crypto-money market is very volatile and prices fluctuate wildly, but violent volatility means huge profit margins, so everyone wants to profit from it.

[Sevarchik]

Cryptomarket is young. This is one of the reason high volatile.
News about blocking exchanger can drop price.
Every day starts new project's whose ideas can change situation in cryptoworld

[UZIzzzz]

Cryptomarket is just a market that has just come out. It is very unstable. It is restricted by the influence of national policies, especially China.

[Acguy]

This market is purely on speculation which is why it is so volatile and given the recent up rise people will still be happy to take profits at these levels.

[bubbagump]

What I don’t understand is what gives these coins their price other than basic supply and demand?. I just don’t get the fundamentals of this market. For example, what makes an Ethereum worth $1000?. How do you know that’s what it should be worth and not $500 for example?. Again, other than supply and demand.

Honestly, nobody knows what a coin is truly worth, but some things to consider are the potential use-case, the viability of such a product, who's involved in not only the tech side of a coin, but also the marketing, and whether or not they have any serious competition.  In those regards, it's not much different from evaluating anything on the traditional stock market.  Aside from the obvious uncertainty of not having a tangible product or company backing these coins, there's also the uncertainty of almost non-existent regulation, huge accumulations of coins under a small number of largely anonymous people, and terrible exchange platforms that seem suspiciously prone to "hacking" and "DDoSes" and may or may not even be there tomorrow.  Then there are things like PnD groups, insider trading, and other forms of blatant collusion that would be illegal with traditional investments.  It all adds up to exactly who-the-hell-knows-what-any-of-this-is-worth.  Right now, and for the foreseeable future, it's not so much an avenue of investment but a huge gamble.  There's a very good reason why Warren Buffet wants nothing to do with cryptos--it's not something that can be analyzed and accurately charted.  You can take all of your traditional TA and FA and throw it out of the window because for us mere mortals in the crypto-realm, market movements might as well be acts of god.

I have about $10,000 invested so far and want to invest more but I’m always scared that I will wake up in the morning and find that the US has banned or is working on banning them and that will make the crypto market crash beyond repair. Even with the latest crash, I haven’t lost money yet but the market is too volatile. Too many inexperienced traders in the game trying to get rich. Although, I don’t mind taking risks, I don’t want to throw money either. To the people who have substantial amounts invested, how do you deal with the fear that this market is so volatile like and any major bad news could lead to you losing all your money. Definitely a very risky market compared to the regular stock market. Do you see this market lasting a few years without government interference?

You're obviously intelligent enough to already know this, but it still bears repeating:

Don't invest gamble what you're not willing to flush down the toilet and also assume that any money that you put into this is already going to be lost.  There is potentially a lot of money to be made in this market but right now it looks almost as likely that you will walk away with an empty wallet.

I forgot to mention what might actually be the most important part... a shitcoin is just as likely to make you money as a fundamentally good one 

[CoinCollector006]

Several points to keep in mind

1. Bitcoin itself has a major a selloff of 20% to 40% just about every quarter. Crypto investing is not for the faint of heart.

2. Small crypto coins will always be more volatile than Bitcoin due to their illiquidity, fewer exchanges where they can be transacted  and outsized influence of whales and pump and dump groups. 

3. Buy when there is blood on the streets, this applies to stocks, crypto or any other investable asset. If anyone wishes to allocate fresh capital now may be the time to do so. 

4. If an investor needs relative safety and muted volatility, they may be better off investing in US Treasury bonds not crypto.   

[Osiris0]

Cryptomarket is now ruled by some serious guys from some big institutions. And only knowledge of their global plans can help to surf on this waves

[cryptosifu]

The cryptocurrency market is the most volatile out of all the markets.  Cryptocurrencies take the stairs up and the elevators down.  It's not for everyone and only the strong will prosper. 

[gizmodo1987]

The volatility of the coins is due to people who are just starting with cryptocurerncy.  Those people who just follow the trend without knowing or without any research about cryptocurrency.  Like if there are new coins that will trend those people i mean will follow and buy that coins.  And when the big whales move something like spread FUD those people will be in panic and sell it even they will loss because they are afraid if that coin will be going down and they will have a huge loss. Big whales are the players in crypto world.

[Luckym7]

Yes now crypto currency market is very volatile hope it will be more growing after 19 Jan because now most of the coin have a fork.

[Haunebu]

Several points to keep in mind

1. Bitcoin itself has a major a selloff of 20% to 40% just about every quarter. Crypto investing is not for the faint of heart.

2. Small crypto coins will always be more volatile than Bitcoin due to their illiquidity, fewer exchanges where they can be transacted  and outsized influence of whales and pump and dump groups. 

3. Buy when there is blood on the streets, this applies to stocks, crypto or any other investable asset. If anyone wishes to allocate fresh capital now may be the time to do so. 

4. If an investor needs relative safety and muted volatility, they may be better off investing in US Treasury bonds not crypto.   

Superb points. I completely agree with all your points and I feel that bitcoin is way more reliable than altcoins in the short term and long term. The thing is that major profits can be earned in the short term and long term through altcoins when compared to bitcoin, but it comes with a higher degree of risk which the investor is liable to. Everyone with basic knowledge of the crypto world knows how volatile this market really is which is why everyone including me advises people to invest only what they are willing to lose. As you said, US treasury are far more reliable for small profits.

[desi92]

Hello people, although I’ve only been trading crypto currencies for about a month now, I have learnt a lot. I have made good money on the regular stock market many times but to be honest, my regular stock market profits(although good) are boring compared to what’s possible dealing crypto currencies.

Well, i know cryptocurrency is new technology that gain much interest from outside people.
But i dont think that you need to involve in this crytpocurrency if you have much profit in stock market.
However, we run this all just for profit. Nothing else.