In this article, we will be going through crypto volatility and understand all about the most volatile cryptocurrency for day trading.
Volatility is a major term associated with cryptocurrency and tokens in the digital finance world. This is simply what can be used to define the unstable nature of coins, no matter what kind of token this is.
Volatility is the variation of cryptos price in a particular time frame. This means that the switch up or down of the price of a specific token within a certain time is the volatility of such token.
There are many tokens in the coin market which are highly volatile and can give investors a high amount of funds in no time, and also at the same time lead to loss of funds on the investors’ part.
This token varies depending on several things as many factors can make a coin or token very volatile in the coin market, from average whale investors moves in the market to rug-pulls of scam tokens to even dumping, which is a process where significant investors of crypto take their investment and leave the market.
All this can lead to the volatility of crypto in the coin market, which will lead to other effects on this particular coin since this volatility generally affects all aspects of a token.
What Is Crypto Volatility?
Crypto Volatility, as already explained, is the swift change in the price of a coin or token in the coin market over a particular period.
Many factors affect a coin and lead to increased volatility of such coin. These factors include:
- Large Investment: When a token gets a vast investment, whether from an individual or group of people, the token sees a huge price spike over time. This generally causes volatility on the part of this coin.
- The exit of Whales on a Coin: Whales are major and high stake investors on a particular coin. These whales make significant investments in a token and buy off a large chunk of the total supply of this token. A recent example of this is the Whale investor of the Shiba Inu coin, who bought 13% of the total supply of the Shiba Inu token and is now a billionaire as a result of this.
When a major whale like the above example pulls out or liquidates its assets, the token witnesses major volatility in price and other aspects as this exit of a whale causes a ripple effect.
How to Check For Crypto Volatility
Crypto traders need to understand the process of checking for the volatility of a particular token. This will help them make the best decision for any token and maximize profit and get more funds through their investment.
Checking for the volatility of a particular token can be a challenging task but one which can be handed with attentiveness to some basic details in the crypto market.
- To check for volatility, users can identify the number of holders and the increase in the number of investors, as this affects the crypto price at a particular time.
- Another way to calculate the volatility of a token is to check the percentage surge of the coin on top platforms like CoinMarketCap, as this also affects the volatility of a particular token.
- To check volatility, it is also important to note the coin’s strength in the coin market at that particular time, as this determines the spike in the price of the coin or its dip in the coin market.
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Top 10 Most Volatile Cryptocurrency for Day Trading On Binance
Here are the top ten most volatile cryptos for day trading on the Binance crypto trading and exchange platform:
- Ethereum (ETH)
- Ripple (XRP)
- Bitcoin (BTC)
- Stellar (XLM)
- Bitcoin Cash (BCH)
- Solana (SOL)
- Dogecoin (DOGE)
- Litecoin (LTC)
- Shiba Inu (SHIB)
- Ethereum Classic (ETC)
These are the top tokens on Binance with high volatility and the most volatile cryptocurrency for day trading.
Volatility is a term that Day traders of cryptocurrency need to understand before trading some cryptos and tokens. This will help them make the best decision on which coins they can use for Day trading.
What are your thoughts on the most volatile cryptocurrency for day trading on the Binance platform? Share your views and opinion in the comment section.