This season we can observe that cryptocurrencies tend to move up and down even by 15% of value on a daily basis. Such changes of cost are called a volatility. But what if… this is completely normal and sudden changes are one of the qualities of this cryptocurrencies allowing you to earn a good profits?
First of all, the cryptocurrencies made it into the mainstream quite recently, so all of the news regarding them and rumors are all”hot”. After each statement of government officials about possibly regulating or prohibiting the cryptocurrency market we observe huge price movements.
Secondly the character of cryptocurrencies is similar to a”store of value” (such as gold had been in the past) – many investors believe these as backup investment option for stocks, physical assets like gold and fiat (conventional ) currencies. The speed of transfer has also an influence upon volatility of this cryptocurrency. Together with the quickest ones, the transfer takes just few moments (around a moment ), what makes them excellent asset for short-term trading, if currently there is no fantastic trend on other types of assets.
What everybody should keep in mind – that speed goes well for its lifespan trends on crypto currencies. While on routine markets trends might last weeks or perhaps years – here it happens within even days or hours.
Therefore one investor making 100 million trade on stock market will not cause substantial cost shift, but on scale of crypto money market that this is a significant and noticeable trade. Know more About ico advisory
As crypto currencies are digital assets, they are subject to technical and applications updates of cryptocurrencies attributes or enlarging blockchain cooperation, making it even more attractive to the prospective investors (such as activation of SegWit essentially caused value of Bitcoin to be doubled).
These elements combined are the reasons why we’re observing these enormous price changes in cost of cryptocurrencies within couple of hours, weeks, days