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This year we can see that cryptocurrencies tend to fluctuate by or by 15% of the daily value. Such price fluctuations are known as volatility. But what if ... this is normal and a sudden change is one of the features of cryptocurrensets that allow you to make a good profit?
First of all, cryptocurrensets have come to the forefront recently, so all the related issues and rumors are "hot". After each statement of government officials about regulating or blocking the cryptocurrency market we see a major price movement.
Secondly the nature of cryptocurrensets is similar to the "value store" (as pre-existing gold) - many investors consider this as an option to invest in a backup of stocks, tangible assets like gold and fiat (traditional) currencies. The speed of transfer also contributes to the volatility of digital currency. Very quickly, the transfer takes only a few seconds (up to a minute), which makes them an excellent asset for short-term trading, if at the moment there is no good practice in other types of assets.
What everyone should remember - that speed goes hand in hand with living habits in the crypto currency era. While in the normal market the styles can last for months or even years - here they happen within days or hours.
This brings us to the next point - although we are talking about a market worth $ 1 trillion, it is still very small compared to the daily trading volume compared to the traditional currency market or stocks. So a single investor who makes 100 million transactions in the stock market will not cause significant price changes, but on the crypto currency market scale this is an important and visible transaction.
Since crypto currencies are digital assets, they are subject to technical and software updates for digital currency features or expand blockchain partnerships, making it more attractive to potential investors (as SegWit performance basically doubles the value of Bitcoin).
These factors are compounded by the reasons why we see such a dramatic change in cryptocurrencies within a few hours, days, weeks, etc.
But answering the question from the first section - one of the oldest rules of trading is cheap, high-selling - so having short but strong habits each day (instead of a weak way weeks or months like stocks) offers many opportunities to make a good profit if used properly.
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