This year we can see that cryptocurrencies tend to move up and down even at 15% of its daily value. Such price fluctuations are known as fluctuations. But what if … this is not uncommon and sudden changes are one of the things that give you a chance to benefit?
First of all, cryptocurrensets reached a climax very recently, which is why all the stories about them and the rumors are “hot”. After every official comment on how to regulate or restrict the cryptocurrency market we see a rise in high prices.
Again the way cryptocurrensets act as a “value store” (as gold used to be) – many investors see this as a way to get money back in stocks, things like gold and fiat (traditional). Transfer rates also affect cryptocurrency exchanges. Very fast, the transfer takes even a few seconds (up to a minute), which makes them an invaluable resource for temporary allowances, if at the moment there are no alternatives to certain items.
What everyone should keep in mind – this speed also goes hand in hand with living on crypto currencies. Whereas regular markets last for months or even years – this happens even for a few days or hours.
This leads us to the next point – even though we are talking about a market worth hundreds of billions of dollars, it is still relatively small compared to the daily trading volume compared to the stock market or stocks. As a result, a single 100 million dollar trader in the market will not make a significant price change, but in the crypto currency market it is an important and visible factor.
Since crypto currencies are digital, they are controlled by expertise and software on cryptocurrencies or expand blockchain alliances, which makes them more attractive to potential investors (as the introduction of SegWit actually increased Bitcoin profits).
These factors together are the reasons why we are seeing a dramatic change in the price of cryptocurrencies within a few hours, days, weeks and much more.
But answering the question from the first paragraph – one of the oldest rules for selling and buying cheap, high-selling – why having short but powerful events every day (rather than weak weeks or months as stocks) offers more opportunities to make good value if used properly.