Why bitcoin is volatile? #BitcoinBasics
Bitcoin’s volatility has structural causes:
1. Inelastic supply: new BTC issuance doesn’t respond to price quickly; small demand shocks move price a lot.
2. Leverage/derivatives: funding and liquidations can amplify moves.
3. Liquidity cycles & macro news: rates, regulation, and big flows matter.
4. Narrative speed: sentiment can flip on headlines.
If you buy your first sats, pick a trusted exchange with: strong security (hardware-key 2FA), clear fee schedule, robust custody practices (cold storage, educational resources, and responsive support such as binance. Withdraw small test amounts first; learn self-custody before large transfers.