Many individuals are becoming interested in cryptocurrency, but the market’s volatility is keeping them away. In the past number of years, digital currencies have grown in popularity around the world, but they have yet to persuade investors to see them as an asset akin to gold or stock. Crypto trading is purely volatile right now due to a lack of awareness and laws. Before investing in these volatile cryptocurrencies, investors should constantly be on high alert. This essay aims to explain the numerous Cryptocurrencies that are extremely volatile and should be avoided by all investors. You can visit bitcointrader2.com for more information on trading and investment.
Contents
Ten Most Volatile Cryptocurrencies
1. Bitcoin
Bitcoin: Bitcoin is the oldest cryptocurrency on the market, but it is also the most volatile. BTC’s market value has risen in recent years, benefiting not just it’s investors but also the worldwide crypto market as a whole. Nonetheless, for some time now, Bitcoin has been one of the most volatile cryptocurrencies, despite it’s wide profit margin.
2. Litecoin
Litecoin: It’s also worth noticing the price volatility of Litecoin, despite the fact that it’s prices have fallen dramatically from their all-time high of US$412 in May. Despite this, the cryptocurrency has recovered. Despite it’s volatility, a number of investors believe this coin is a good currency to invest in for the long run.
3. Solana
Solana: SOL is now one of the top five cryptos in the world, thanks to a recent price rise. The volatility index for 2021 was 7183 percent. Since 2020, the cryptocurrency has gained by more than 12000 percent, indicating that it is having a good year.
4. XRP
Ripple(XRP): Ripple was created to make international transactions easier and less costly. However, because of the frequent price changes, it’s worth is seen as volatile. The cryptocurrency increased by 170 percent in November 2020, as fears of an SEC action against the network grew. This may have hampered the cryptocurrency’s ability to achieve significant highs this year.
5. Dogecoin
Dogecoin: After the Shiba Inu dog went viral in 2013, Dogecoin was created. Elon Musk’s tweets, as well as it’s inclusion in Coinbase, contributed to the coin’s rapid growth. It has also been accepted for fan tokens by a number of sports clubs, boosting it’s commercial value. DOGE is extremely volatile because of it’s reliance on promoters and stockholders to determine it’s price.
6. Ethereum
Ethereum: In terms of market share, Ethereum is the second most valuable cryptocurrency. In the price rise of 2021, ETH has already outpaced it’s main competitor, bitcoin. Unlike some other cryptos, it surged and showed subsequent growth after starting from above US$730 per currency unit in early January. It peaked in May and was on the verge of crossing the $4000 barrier. It’s volatility in 2021 is expected to be 4859 percent, according to forecasts.
7. Celo
Celo: Celo is a blockchain network that aims to boost cryptocurrency acceptance among smartphone users. Crypto intends to introduce billions of cellphone users around the world to transact without the use of financial services or restrictions by using phone numbers as public keys. It is one of the most volatile cryptocurrencies on the market, despite it’s lofty ambitions.
8. Shiba Inu
Shiba Inu: Originally only known as a meme currency, SHIB has amassed a devoted following over the years. Shiba Inu is a dog that was introduced in the middle of 2020 and has a very low price. As a result, it has a huge potential for expansion. After being listed on some of the most popular crypto exchanges, the cryptocurrency gained popularity. Recently, the coin soared 300 percent, following a tweet from Elon Musk about his new Shiba Inu puppy.
9. XLM
STELLAR (XLM): Stellar’s volatility in 2021 is estimated to be 14000 percent or 36820 percent. This makes this cryptocurrency one of the most volatile in recent memory. Stellar’s swings have been sudden and like most digital coins, began to decline in the middle of the year.
10. BCH
Bitcoin Cash (BCH): The volatility of BITCOIN CASH (BCH) increased to 1030 percent in 2021. Following Bitcoin’s demise in late 2020, the currency’s value began to rise at a faster rate. It peaked at $1635 in May 2021, after reaching $340 in January 2021. It eventually fell to less than half of it’s peak value, similar to major cryptocurrencies.
FAQs
Why are meme coins like Dogecoin and Shiba Inu so volatile?
How does regulatory news affect cryptocurrency volatility?
Are larger cryptocurrencies like Bitcoin less volatile?
How does the volatility of cryptocurrencies compare to traditional assets?
Can technical analysis help predict volatile crypto price movements?
How do network upgrades or changes affect a cryptocurrency’s volatility?
Conclusion
Volatility is a defining characteristic of the cryptocurrency market, and the ten coins we’ve explored in this article represent some of the most dramatic examples of this trait. From meme coins like Dogecoin and Shiba Inu to ambitious blockchain platforms like Solana and Polkadot, each of these cryptocurrencies offers a unique blend of potential rewards and risks.
While the extreme price swings of these coins can be daunting, they also represent opportunities for those willing to navigate the turbulent waters of the crypto market. However, it’s crucial to approach these investments with caution, thorough research, and a clear understanding of your risk tolerance.