Which cryptocurrencies are the most volatile?

Asked a year ago

Hi, I'd like to know which cryptos are the most volatile as I want to grow my portfolio.

Fletcher Hernandez

Wednesday, February 02, 2022

The most volatile cryptocurrencies are low market cap coins. You can determine the market cap by multiplying the current price of a coin by its circulating supply. Generally, the larger the coin's market cap, the more popular it is. Small market cap coins are highly volatile and risky, but sometimes with huge growth potential.

Hugh Bender

Saturday, February 26, 2022

It is almost impossible to point out the most volatile cryptocurrency in the market today. The best way to find them will be by checking their market capitalization to see how much they have lost or gained in the past year, month, week, or day. The most volatile assets often have a huge gap between their all time high and all time low in a given period.

The confidence of the market also affects cryptocurrencies differently. Bitcoin is the first and most popular cryptocurrency and it maintains a fairly predictable level of changes in its price than other cryptocurrencies that are just being launched. The thing is, people hear more about Bitcoin than they do about other new cryptocurrencies. They therefore purchase more Bitcoin than they purchase other cryptocurrencies.

Some projects also experience sudden events like a rug pull caused by dishonest founders who wait for everyone else to buy and then sell the largest amount possible on these unsuspectig buyers, triggering a massive sale and crash of the project. So considering these while doing your own research will go a long way to help you steer clear from higly volatile cryptocurrency projects.

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