Crypto Volatility

Cryptocurrencies are a new and exciting investment opportunity but can also be highly volatile. This guide will teach you how to trade in a volatile crypto market to increase your success probability.  We will cover everything from identifying a volatile crypto market to managing risk when trading volatility. So whether you are a seasoned trader or just starting, this guide has something for you. Why Is the Crypto Market so Volatile? The crypto market is volatile because it is still…

Financial markets worldwide are struggling to cope with one of the worst economic crises in recent history. The crypto market is no exception, seeing most of its assets alternating between fleeting highs and depressing lows. In these uncertain times, investors are looking toward reliable assets to stabilize their portfolios, and the answer could come from gold-backed tokens. But are these gold-pegged cryptocurrencies enough to mitigate the extreme volatility of the crypto market? We tend to return to a safe place…

Bitcoin continues to fluctuate in value between $41,000 and $43,000 at the start of the week. The most popular cryptocurrency worldwide cannot overcome the bad news and fear of shrinking most financial markets. For instance, the U.S. just recorded the highest inflation in the past four decades. Nevertheless, crypto analysts remain optimistic about Bitcoin's foreseeable future. Bitcoin’s Flat Volatility As the third week of January kicks off, the crypto market’s capitalization drops below the $2 trillion level. This downtrend affects…

Cryptocurrencies present an impactful stride in the financial system, especially to individuals lacking access to financial services. Through digital assets and blockchain technology, users worldwide can conduct transactions at lower fees, generate passive incomes, and establish stronger communities.  Despite various downsides such as volatility or complex understanding, virtual currencies show a growing interest and recognition from millions of retail and institutional investors. However, the pace of adoption largely depends on monetary sovereignty since the authorities have regulatory powers on whether…

Digital currencies pegged to traditional assets such as fiat are known as stablecoins. Based on their design, they are capable of holding a steady value and provide cryptocurrency traders an easy means of escaping the high volatility of the cryptocurrency markets. On April 17, the CEO of blockchain database startup Messari tweeted about the value of stablecoins on exchanges. Ryan Selkis said the massive sum of cryptocurrency capital are on the sidelines but ready to move into BTC, ETH, XRP and…

Crypto stablecoins present an efficient and easy way of managing crypto volatility. Volatility in the crypto market is often regarded as the boon and bane of crypto trading. While on the one hand, it allows traders to accumulate substantial profits, it can cause significant losses to crypto traders or even lead to missing a perfect opportunity to trade. Stablecoins function to cushion investors from intense volatility witnessed in the crypto market by providing a less volatile means to employ in…

Huobi DM, the futures trading platform of Huobi exchange has recently announced the launch of a new liquidation mechanism to systematically minimize user exposure should prices become too volatile. The platform is introducing these new measures to provide users with a safe, secure and reliable trading experience. In order to help users hedge against liquidation risks, the derivatives platform now provides partial liquidation. This new mechanism gradually reduces a user’s positions, instead of fully liquidating them in a single event.…

After the extreme volatility of cryptocurrencies, the great market crash in 2022 taught a hard lesson to many. The price of cryptocurrencies had vigorously fluctuated within two years. Many started considering cryptocurrencies a volatile market full of uncertainty and speculation at the time. Bitcoin is the first and largest cryptocurrency based on market capitalization. It experienced massive growth starting in 2020, mounting from $9000 to $69000! [caption id="attachment_328303" align="alignnone" width="1680"] Source: Coingecko[/caption] Many people and institutional investors soared on the cryptocurrency bandwagon,…

Cryptocurrencies are units of exchange and hold value because people decide they do. While any other currency or asset type does not back others like Bitcoin, stablecoins are backed by such currencies or assets to stabilize them against the highly volatile nature of the digital currency. According to the law of demand, all other factors withstanding, highly-priced resources have less need. Similarly, the law of supply states that the quantity supplied is directly proportional to the price. Therefore, this means…