Volatility and cryptocurrency

2 min readMay 6, 2020

Hi Sir/Madam,

Straight into it.

Cryptocurrency and volatility…

A key topic to understand when it comes to deciding whether cryptocurrency is the investment option for you.

Volatility is up and down swings in the market, usually due to external matters in the markets or even due news and trends that the markets react too. This makes crypto a volatile investment and it causes their to be huge opportunity in trading to make money, in addition to investing and purchasing cryptocurrency whilst it is selling well below it’s intrinsic value.

The intrinsic value, is the true underlying value of the asset, this is hard to determine with cryptocurrency due to the asset being so volatile and it is still fairly new in the market in comparison to other investments which have been around for decades. Your chances at making money in crypto depend on how well you can handle volatility and whether you are able to buy crypto during one of its troughs in the market.

Volatility brings with it opportunity for those who understand the asset, there is huge chances in order to buy and sell the asset for prices fluctuating from the intrinsic value of the market. The market usually reacts making it easy for those who understand the asset to make quick profits- traders.

If cryptocurrency can offer you with good profits and opportunities within the market, it makes the asset a strong buy during down turns in the market.