Market Volatility

The crypto market is infamous for its extreme volatility, with prices shifting significantly within hours and catching investors off guard.

One example of this is Bitcoin's value soaring from around $5,000 to over $60,000 within a year, only to recede to around $30,000 in the following months.

Traditional markets like the stock market have measures to limit extreme fluctuations. With a disciplined investment strategy, investors can better navigate market volatility.

Market volatility isn't always negative; it can also present opportunities for high returns.

Those who purchased Bitcoin during its low in March 2020 and held on could have enjoyed significant gains by the end of the year. However, such opportunities require keen market understanding, patience, and a pinch of luck.

A cautious approach is often the best strategy, as market manipulation can contribute to the crypto market's volatility. Pump-and-dump schemes artificially inflate an asset's price, only to sell off at a higher price, leaving unsuspecting investors with losses.

Well-established cryptocurrencies like Bitcoin and Ethereum have more liquidity and market depth, making them less susceptible to market manipulation.