VOLATILITY IN CRYPTOCURRENCY - BY @SOLEXYBABA

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Hello to everyone in this wonderful community today, I hope we all had a wonderful night rest too. As we all know, today is Wednesday and we get to talk about cryptocurrency. How many of us have been intimated on the topic Volatility?

I know some of us are still new in this platform but today, I will like to share with you all some necessary things regarding this topic, so I urge you all to take a calm breath as I begin my teaching.

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Before we get started, it is necessary that we all get the idea on what volatility is.

WHAT IS VOLATILITY

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Volatility can be seen as the instability in price of an asset. It is also the action in which a price of a currency is not certain and can not be predicted.

We all have noticed that when ever we claim our reward gotten from a curated article after seven days, we find out that the value of our account changes, and then after a short while when we check back to see the value of our account again, we noticed that the value of the price has changed again either it has increased or decreased.

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So that change is as a result of volatility in the price of the assets in our account. As we all know the token we get from our reward are all crypto currency and as such it is also a digital currency and has the volatility feature too.

There was a day a newbie called on my attention and then said that someone is taking his steem token, then I asked him how did he found out. So he said when he logged into his wallet, the value of his account changed and hence he believed someone has taken from his account.

I then checked his club status and check the transaction history but all I could find were the transactions made by him and no one has taken anything from his account.

It was then I realized that he didn't know the term volatility in digital currency and so I intimated him on that aspect. Volatility is a normal phenomenon in as much as the digital currency is involved and hence it is expected that we know it before investing in crypto currency.

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It is always recommended that as crypto investors, we should make sure and be certain that we risk what we can afford to lose while purchasing crypto currency for this will help you to minimize losses should in case of eventuality.

Many of us key into the crypto currency business without having a clear information on what the crypto currency does and how it profit users and also how one can lose funds too.

So the uncertainty of the price of crypto currency can either profit an investor or make him lose money. Many investors purchase crypto currency when the price is low and then choose to sell it when it is high.

Now due to the uncertainty of the crypto currency price, the particular currency may like rise in price and which in turn will favor the investor, also due to the volatility in price, that same crypto currency may fall below the amount that was used to purchased it by the investor.

And that is why it is often advisable to invest with the money you can afford to should in case this goes south and we should all be careful when investing and most of all, do not use greed to invest.

Thank you all for reading.