To start with, the cryptocurrencies caused it to be to the popular very lately, therefore all the news regarding them and rumors are "hot" ;.After each and every statement of government officials about possibly regulating or banning the cryptocurrency market we observe large price movements. What everybody else must remember - that pace goes as properly for the lifetime trends on crypto currencies. While on normal areas tendencies may last months or even years - here it happens within also times or hours. lasting days or months like on stocks.
Secondly the type of cryptocurrencies is more such as a "store of value" (like silver had been in the past) - several investors consider these as backup investment choice to stocks, physical resources like gold and fiat (traditional) bitmain currencies. The pace of transfer has as properly an influence upon volatility of the cryptocurrency. With the quickest types, the move takes actually just number of moments (up to a minute), why is them exceptional advantage for brief expression trading, if presently there's number great tendency on different types of assets.
That brings people to another point - though we're speaking in regards to a market value hundreds of billions of US pounds, it's however tiny volume when compared with daily trading volume researching to standard currency industry or stocks. Thus a single investor creating 100 million purchase on inventory market will not trigger large cost change, but on scale of crypto currency market this can be a substantial and obvious transaction. Inexpensive, promote high - therefore having short but powerful tendencies daily instead of way weaker ones.
As crypto currencies are digital resources, they're subject to specialized and application improvements of cryptocurrencies characteristics or growing blockchain collaboration, which will make it more appealing to the possible investors (like initial of SegWit essentially caused value of Bitcoin to be doubled. These elements combined are the reasons why we're seeing such enormous value changes in cost of cryptocurrencies within number of hours, days, months etc. But addressing the problem from the first paragraph - one of the common rules of trading would be to buy.
