When it comes to buying or selling a cryptocurrency, be it the ubiquitous Bitcoin or another altcoin, there is one variable that is inevitable: price. But it is precisely the price that is the most volatile component of a cryptocurrency. It can move up or down at lightning speed, That can lead to us making money … or losing it.
The price of cryptocurrencies is extremely volatile, much higher than that of more traditional investments like the stock market or precious metals
Ideally, buy when the price is low and sell when it is high. In theory, it’s easy. But fluctuations in the value of a cryptocurrency can happen in minutes. And what makes them waver? We will try to answer that in this new video.
In part, this volatility has made cryptocurrencies so popular and attractive. The ability to multiply an investment in a very short time is almost exclusive to this market. However, this works both ways, as price drops can occur just as or even faster than increases.
And that has never happened before. The 2017 Christmas surge came in a few hours, shortly after an unprecedented flood period in which Bitcoin and other cryptocurrencies hit their all-time highs. Thousands of buyers, motivated by this tide, bought just before the hecatomb to watch in horror as their investment wiped out before their very eyes.
For this reason, it is important to know what can affect the price of cryptocurrencies in order to be aware of it and to try as much as possible. Be one step ahead of the chaotic movements of cryptocurrencies.