How To Manage Crypto Volatility
Key Takeaways
- Crypto’s volatility comes from limited liquidity, speculation, and market sentiment.
- Volatility creates both opportunity and risk for investors.
- Emotional reactions often cause greater losses than price movement itself.
- A plan and perspective are essential to long-term success in crypto investing.
Volatility is both a blessing and a curse for the investment world. Those making frequent transactions—day or options traders, say—may view volatility as a necessary tool to be able to achieve a profit. Those seeking out short-term liquidity may fear the potential for loss associated with volatile periods. The first decade and a half of the cryptocurrency space have often taken traditional definitions of volatility and…
