Author: Ulrike Roth

Bitcoin’s price fluctuation is spot rate on the cryptcurrency exchanges. These are actually driven by various factors. The volatility is measured in conventional markets using Volatility Index or otherwise known as CBOE Volatility Index or VIX. Just recently, the volatility index for BTC becomes available. Called as Bitcoin Volatility Index, it’s focused on monitoring volatility of the leading cryptocurrency via market cap over different time periods.

Historically, the value of Bitcoin is so volatile. For example, in just a span of 3 months from October of 2017 to January of 2018, its price volatility peaked at around 8 percent. This is actually twice the volatility of BTC in a 30-day cycle ending on January 15, 2020. But what are the driving factors for BTC’s volatility? Let us try to figure it out in the next paragraphs.

Negative News are Automatic Rate Change

Any news events that rattled Bitcoin users may include government statements and geopolitical events in which BTC may be directly or indirectly impacted. Early adapters of Bitcoin included a number of bad actors that produce headline stories that is harnessing fear amongst investors.

All of the incidents as well as public panic ensuing the change in price of Bitcoin versus fiat currencies faster than you know. On the other hand, Bitcoin-friendly investors see these events as a strong proof that the market is gradually maturing and thus, driving the value of Bitcoin up in short time frame by simply following the turn of events.

The Way Bitcoin is Perceive

Another reason why Bitcoin might fluctuate towards fiat currencies is with the expected value of it versus fiat currencies. BTCs have properties which is almost similar to gold. It’s governed by design decisions by its developers and limiting its production to a fixed volume of 21 million Bitcoins.

Because BTC greatly differs from fiat currencies, which is centralized and managed by governments who like to maintain high employment, satisfactory growth and low inflation via investing in capital resources – as the economy built with fiat currency shows any sign of weakness or strength, investors might push on allocating more or less of their valued assets to Bitcoin.

Uncertainty of Bitcoin’s Future

The volatility of Bitcoin is driven as well by large part through varying perception of intrinsic value of digital currency as storage value and a method of transfer. Store of value is basically a function to which an asset may be used in the future with predictability. Store of value could also be saved and be exchanged either for goods or services in the distant future.

Investing in Bitcoin is indeed risk but it is justified by the rewards you can get from it. In fact, those who have done their research and real risk takers even take a secured loan near me in Florida to start investing in Bitcoin.

Bitcoin was created for almost a decade. Since then, cryptocurrency market keep growing and faced stream of scrutiny saying that it’s headed for obsolescence or that the coin is dead. Then a decade later, just one bitcoin is already valued at four figures and it seems that it have set foot its foundation coupled with its growing maturity in the market. The same could not be said for sector which includes hundreds or probably, thousands of tokens and coins, each exhibiting different levels of success.

And despite from the promises of cryptocurrencies, they appear to fail breaking into mainstream. Still, there are merchants that are accepting payments using digital currency and majority of the financial services stick to fiat currencies. Numerous critics believe that crypto might have been a fad. Contrary to what its supporters say, it shows a clear sign that even with culling of crypto ranks, the market would emerge better and stronger.

Uncertainties in the Crypto Market

There is no denying to the fact that prices for Bitcoin and other cryptocurrencies have crashed in the early quarters of 2018. The volatility that defined the market seems to be fading little by little. While this spells bad news among its speculators, it is actually awesome news for its investors. And this is only backing up their claims that it’s the key to unlocking the future of cryptocurrency.

Both blockchain and cryptocurrencies in general are beginning to gain mainstream attention. While merchants remained aware of the digital currencies, major tech companies and banks as well as other corporations already begun using them.

According to Ceek VR CEO as well as Founder Mary Spio non-verbatim, Cryptocurrency is far from being dead. It is only scratching the surface towards reaching mainstream attention when companies offer real life value as well as integration of digital currency, we’ll start to see a new wave and the resurgence of cryptocurrency. At the end of the day, it is all focused on creating natural demand and lessening hype and speculation.

It’s just a Matter of Time

While there are numerous people who have not entertained the idea that the crypto market and Bitcoin are mainstream, the sector is focused on proving these people wrong. While digital currencies are still not the standard for value exchanges and payments, the technology in which it is based from – blockchain – is working fast to become the standard in different industries and sectors.

Now may be the high time for you to make investments in cryptocurrency while it is not in full bloom. You may lose but that’s the risk; just think of the greater rewards you can get. After all, if ever you hit the former, you can always seek help from bankruptcy lawyers San Diego who can help you out in your situation.

It might seem to be a simple idea to jump into crypto world. But in reality, this is a complex subject that should be given with thorough consideration. Just as how you carefully thought of working with property management Stockbridge, you don’t want to fail with your investment in crypto. There are intricacies involved when trading crypto and you have to know these things to make a smart decision.

Let us discuss basic and fundamental information to make sure that nothing will stand in your way the moment that you get started trading cryptocurrency.

Aspects of Crypto Trading You must Stick in Your Head

As mentioned, there are various aspects that can help in knowing a whole lot of things about crypto coins. In the sea of crypto, the true factor to be considered would be the ranking. You can learn many about a certain coin and at the same time, this can be used to navigate through the process.

According to crypto trading experts, the trading volume and price should be looked at separately and together. Coins with low price don’t necessarily indicate that it is performing low and thus, be judged upon.

There are different elements that might have resulted to this. Possibly, it may be because of an irrelevant project communication and management or insufficient community trust. Having said that, it is causing low demands and forcing the low value of the coin. On the other hand, it should be mentioned that this doesn’t apply to all coins in the market. Therefore, it is wise to do your homework before making any move.

Your Decision will Dictate the Actions You’ll Do Next

The next thing you have to do is to consider what makes the coin unique. To give you an example, stablecoins are supported by real assets whether metal or money. As a result, it confronts the volatility for crypto market. In most cases, the coins are available in three categories and these are:

1. Crypto-Collateralized
2. Fiat-Collateralized and;
3. Metal backed

Among these, rankings are then applied and the following decisions are made. Further research on the coin’s background is vital as well for it can provide additional benefits in deeply understanding its actual market value.

• Now, to make sure that you’re set in the right direction, you may ask questions such as:
• Does the coin have a purpose or application?
• Does it have active community and forthright?
• What is its liquidity or in other words, how capable it is in converting to cash or to other coins?
• What’s the legal regulation in relation to the coin in other regions or countries?

Cryptocurrency is a pretty hot topic for the past several years, especially today. For how many times we’ve heard people telling their stories of how they’ve become millionaires overnight and how some got broke in high hopes of making quick bucks.

Well, the fact that you’re here in this page and reading this article is already a clear indication that you have great interests to invest in cryptocurrency. These cryptographic tokens are exchangeable and immutable. Because of such, it becomes non-manipulatable and hard money for the entire world to use. Advocates for cryptocurrencies are seeing the future wherein Bitcoins and other tokens can be used as a substitute to Dollar, Euro and other fiat currency and create the very first hard and free world currency.

Ying-Yang

On top of that, there are many good reasons to start investing in Bitcoin or any other cryptocurrency for that matter.

First things first, you want to hedge your net worth against the fall of dollar. This is what many people are assuming to happen in the distant future. Second of all, you are supporting social vision of cryptocurrency, which is a world free from hard money. And lastly, simply because you know and understand the technology running behind it.

If there are good reasons to invest in cryptocurrency, there are also bad; not to be biased. Countless of people have fallen victim with the hype that it brings. There’s always someone who is caught by the fear of missing out and thus, encourages them to buy in bulk, hoping that they will generate fast cash. This is regardless if they have thorough understanding of cryptocurrency or not.

If you have the same reasoning for investing in crypto, then you better stop it right now. You need to learn it first before you make any investments.

It’s Fine to Take Calculated Risks

One thing that you need to know about crypto is the fact that its volatility is so unpredictable. This is to the point that investing in such isn’t normal. Furthermore, there’s always this risk that your country might be outlawing the exchange and trade of crypto. Now you have a problem.

While we do know that Bitcoin still holds the undisputed title for being the King of cryptocurrencies, still a lot of people have lots of questions with regards to its utility. If you will just be taking the plunge without doing your homework, then for sure, you’ll regret your decision of investing in crypo anytime soon. Thus, making calculated risks are so crucial – more so if you’ll be using funds from lawsuit financing. Then, you have to be extra careful with every action you are about to make.