Is BTC Volatility More of an Advantage than Disadvantage?

[KingsDen]

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?

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[DeathAngel]

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.

[Rikafip]

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.

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?

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.

[jackg]

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.

[DarkDays]

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?

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.

[Vaskiy]

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?

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.

[stompix]

My question, is the price volatility of BTC more of an advantage than disadvantage to traders?

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.

[ReiMomo]

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.

[BlackHatCoiner]

Is BTC Volatility More of an Advantage than Disadvantage?

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.

[CaVO32]

My question, is the price volatility of BTC more of an advantage than disadvantage to traders?

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.

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.

[DarkIT]

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?

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.

[adzino]

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?

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.

[Shenzou]

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?

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.

[Spack17]

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.

[oktana]

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.

[KingsDen]

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.

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.

[nelson4lov]

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?

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.
 

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.

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".

[jossiel]

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?

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.

[Ozero]

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?

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.

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.

[Dhoe]

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.