🎲 What does 'volatility' mean in digital currencies?
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📌 Simplified definition:
Volatility is the extent of price change of the digital currency over a short period.
It means: the price can rise or fall significantly in minutes or hours.
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📈 Real-life example:
A currency like Bitcoin could have a price of
📍 Today: $62,000
📍 Tomorrow: $58,500
This rapid and large change is called high volatility.
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🧠 Why is the market volatile?
1. Lack of liquidity: some currencies have low trading volume, so changes are sharp.
2. News and tweets: A single tweet from a famous person can move the market.
3. Lack of regulation: the market is still new and open, and fluctuations are normal.
4. Quick speculation: many buy and sell in a short time to make profits.
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⚠️ Is volatility a bad thing?
❌ Not always.
For long-term investors: volatility is normal and is considered an opportunity.
For day traders: requires skills and analysis because the risks are high.
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✅ How to deal as a beginner?
1. Do not invest more than you can afford to lose.
2. Avoid fast trading (scalping) at the beginning.
3. Use strategies like DCA (Dollar Cost Averaging).
4. Focus on strong and long-term projects.
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🧠 Summary:
Volatility is an essential part of the crypto market.
It can cause anxiety, but it also provides opportunities.
The important thing is to learn and start with calculated and clear steps.