Should We Fear Crypto Volatility and Speculation?
What are speculation and volatility, and are they so bad?
When it comes to money, emotion can often override judgement, making us more prone to pessimism. While concepts like speculation and volatility imply uncertainty and danger, there’s more to it than that. Let’s look at these fundamental concepts in more detail. Investopedia defines speculation as:
- “The act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of a substantial gain or other recompense.”
Volatility is described as:
- “The amount of uncertainty or risk related to the size of changes in…
