Crypto prices swing up and down a lot and fast. This is called volatility. It happens with coins like Bitcoin and Ethereum, often in just hours or minutes.
Why Crypto Prices Swing
Several things cause big price changes:
• Low trading volume means one big buy or sell can move prices sharply.
• “Whales” – people with lots of crypto – buy or sell huge amounts at once.
• News about rules, laws, or world events scares or excites traders.
• People react fast to hype, fear, or good/bad feelings in the market.
• Markets run 24/7 with no breaks, so changes happen anytime.
How It Affects You
Volatility brings big risks but also chances to make money:
• Short-term traders can gain from quick ups and downs but need stop-loss tools and small bets.
• Long-term holders should buy a little at a time to smooth out swings.
• Stay calm to avoid panic sells or greedy buys.
Bitcoin’s swings have calmed a bit as the market grows bigger. But smaller coins stay wild. Tools like volatility indexes help track future ups and downs.
