Understanding Volatility and Risk

Volatility in crypto represents variations in the price of a coin over a particular period. Low volatile investments have lower risk since their price does not fluctuate dramatically. The higher the volatility, the higher the risk and lower predictability. Cryptocurrencies are incredibly volatile due to their demand. It is important to remember that if prices start to go up, they will eventually come down, and there are no specific rules regarding price change. It all depends on the supply and demand, investors’, government regulations, and media hype. The cryptosystem is unstable, and so is the crypto market. Decisions must be made fast, after DYOR. DYOR stands for “Doing Your Own Research” and it’s the most valuable advice for new investors. Never buy or sell because someone else does it.

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