Which cryptocurrency has the least amount of volatility?

Asked 2 years ago

Hey there! I'm pretty risk-averse and would like to know which cryptocurrencies have the least amount of volatility .

Hugh Bender

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.

Alec Wiggins

Saturday, February 26, 2022

The volatility of cryptocurrencies is the rate of change in the price of these currencies with time. The reason for changes in the price of cryptocurrencies is due to market actors known traditionally as bulls and bears. When people start selling cryptocurrencies, it leads to more sell-off, and with more sell-off, there will only be an upward movement in the price when the bulls take over the market after seeing the bearish sell-offs as an opportunity to buy the same cryptocurrencies at lower prices.

As buyers keep buying and holding to sell when the price goes up, some sellers who sold earlier get scared or go into a state of Fear, Uncertainty, and Doubt (FUD) in cryptocurrency parlance. They start buying so they do not miss out on the buying opportunity pushing the price back up in the process. Such situations explain why cryptocurrencies have been dubbed speculative assets. No asset is exempted from this volatile trend in crypto but the level of volatility often depends on the level of trust or confidence and sometimes popularity.

If you are looking for something really stable, consider a stablecoin like UST, USDT, USDC, DAI, FRAX, etc. If you want to go into something most people and institutions are into which reduces the possibilities of a crash, then you can consider Bitcoin. Nonetheless, stablecoins are the closest thing to stability in crypto but you cannot profit from up trends by holding these assets.

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