Investing in cryptocurrencies has become a possibility for many investors — even beginners.

The success stories of Bitcoin's appreciation made many people believe they could get rich.

But does this really happen?

There is, indeed, some possibility. However, this investment also has many risks and requires a good level of financial education. Therefore, if you are considering this possibility, be aware of the volatility in cryptocurrencies!

How does volatility work in cryptocurrencies?

Volatility is the term used to designate the price variation of an asset. The more this happens, the greater the risk for the investor. In the case of cryptocurrencies, this occurs quite frequently, following the dynamics of supply and demand laws.

In general, the more attention cryptocurrencies gain, the more they are sought after by investors. As a result, the price increases. However, crises that affect the market cause the price of the currency to drop.

Another factor that interferes with volatility is the limited generation of these assets. In this way, the rate remains predictable and keeps the price stable in the long term.