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Volatility in Crypto Good or Bad ? by reeta0119

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· @reeta0119 ·
$21.30
Volatility in Crypto Good or Bad ?
Cryptocurrencies are getting more attention and increased adoption in many countries however things are not going well in some countries as well. China is one of the countries which has banned crypto completely but community see this move as a stunt by them as they must be planning something behind the scene. 

![image.png](https://images.hive.blog/DQmXP8VQe1rSU2uuSdaaXQa8mQhDVSXMyQvn6VgdYRGaV7J/image.png)

[src](https://images.app.goo.gl/593dGHGiny6VTbAK6)


Volatility is one of the aspects that most people talk about and because its highly volatile so some people say that its not good for investment. Its obvious that we can see a good percentage of the pump or dump in the price which we generally don't see in any other assets in traditional finance. But in my opinion, this is a positive thing because if want to earn the safest and fixed return with the least risk then government bonds and many bank deposits are offering the same. These instruments are not at all volatile and that's why the annual return is also too less. Even in the stock market govt keeps control of all the companies and that's why its not volatile since there is controlling authority.

Now when we talk about crypto then everyone seems to have an interest in getting huge returns but some of them are not happy with volatility. This is contradictory because if we want to earn higher and its obvious that we will get a similar amount of risk involved. People want to take this volatility in their favor so when they earn then crypto is good and when they lose then they blame. This is not fair at all and whoever is in crypto must have gone through the basic knowledge and make entry only when you are ok with its volatile nature.

I don't know if its volatility will reduce when a major chunk of the population enters crypto but if it happens then I don't think that it will be exciting the same that we have it now. I take this volatility as a positive thing it gives us the opportunity to earn more if we are able to take higher risks that are not available in traditional finance. 

Today I am talking about this topic in this post as I had a discussion with one of the neighbors who recently got to know to about crypto through advertisement and he also did a study about some coins including BTC, ETH, DOGE and SOL, etc. I will talk more about crypto advertisements in another post. So coming back to my discussion with a neighbor, he told me that has gone through some coins that I mentioned. He saw so many crypto ads in television so thought of checking more about it. He also mentioned that nowadays prices are down and most of these coins are down by 30-40% in a very short time which is not good as per him. He thinks that its a loss-making situation and people should stay careful but in the next moment, he shared that DOGE has really done well in the last 1 year. 

![image.png](https://images.hive.blog/DQmVEgfsvAGdxdAjse9Z5Wo7LAL6KEBKpxKUHqewXdcbQGx/image.png)

[src](https://images.app.goo.gl/wXqHiz6JBpRrtC19A)

I could not control my laugh for a second as both statements are creating conflict. Because DOGE coin has shown positive price volatility then its good for him and now when prices are down then he thinks crypto is something that people need to be more careful about. Its obvious that we cant follow both statements. People are greedy when it comes to profit-making but they are not ready to lose which is not possible at all. Now every investment can be profitable in anything and I can say this based on my experience however with belief and long term planning we can surely reduce the loss. 

** **

*I believe in crypto and I see this higher price fluctuation as a good thing that gives us the opportunity to be way higher than we can do with banks or some other financial entity. I tried to make the man understand more but he was not really convinced much but I hope he really understand what crypto is all about. In simple words, I can say that volatility in crypto is very good and a kind of money-earning opportunity.* 

** **

**Thank you so much.**
*Stay Safe*


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