Renault Korea announces its first NFT event where customers can win cryptocurrencies after building their virtual cars.
Hyundai Glovis buys GEAA car auction dealer to sell used vehicles online and expand its business in the US.
Hyundai Mobis is spending $1.3 billion to build its first EV component and modules plant in the US and supply them to Hyundai Motors and Kia.
The solar park will generate approximately 260 gigawatt hours of emission-free electricity per year with a planned total capacity of 147.6 megawatts-peak.
HSBC is reviewing its business in Canada, and the possible 100% sale will mean its total exit from the country.
The embroidery technique extends the life of the worn clothing while also giving it a fresh look by adding traditional Japanese flair.
Celsius' co-founder Daniel Leon steps down just a week after CEO and co-founder Alex Mashinsky resigned.
Report: Google ordered 8 million Pixel 7 units in anticipation of higher orders at launch compared to Pixel 6
How to Benefit from Bitcoin's Volatility
Does the volatility of Bitcoin ever concern you as an investor? Find out how you can benefit from Bitcoin's volatility and what that means for investment.
Bitcoin’s price changes constantly and often in unpredictable ways. And this means that you may have the Bitcoin price jump to a significantly high level within a certain period and then fall. While a fall in the price is not something that Bitcoin investors like, it is part of the more considerable Bitcoin volatility, and you can benefit from it in several ways. Moreover, if you want to start trading using bitcoin, use an efficient and secure trading platform like Quantum Code APP
Understanding Bitcoin Volatility
The price of Bitcoin fell significantly at the beginning of this year. And this is just after it hit a high towards the end of last year. These shifts imply that Bitcoin is a volatile digital currency. The price keeps changing, and the changes can be either way. Various factors are responsible for Bitcoin's volatility.
The Russian invasion of Ukraine affected the global financial system, including Bitcoin. With rising inflation, Bitcoin's price has suffered from the war. However, this doesn't mean it will remain low or in a state of decline until the war ends. Apart from the war, the fact that the cryptocurrency market is still young means that Bitcoin is more vulnerable to price changes.
Since it's a decentralized electronic currency, Bitcoin has no central authority like the central bank that controls its use. This unregulated environment also creates volatility as some investors lack confidence in it. Moreover, there are few institutional investors in Bitcoin, further establishing the volatility factors.
How Can You Benefit from Bitcoin's Volatility?
Before Bitcoin's high volatility discourages you, it is essential to understand what it means to an investor. Every investor wants to maximize their gains from an investment. Bitcoin's volatility makes that possible. Without the volatility, there would probably not be such high interest in Bitcoin. Bitcoin's volatility can be good for you in the following ways.
You can benefit from Bitcoin's volatility through Bitcoin trading. Bitcoin trading is a growing option for many Bitcoin investors. As the name suggests, it entails trading in Bitcoin just like you would purchase and sell in stock or foreign exchange markets. Bitcoin trading allows you to buy low and sell high, meaning that you will profit from the changing price of Bitcoin.
You don't need to be conversant with Bitcoin trading to benefit. You can start Bitcoin trading as a beginner by registering on Bitcoin trading platforms. These platforms will work for you after you sign up for free and buy Bitcoins.
You can also benefit from Bitcoin's volatility by buying and holding (HODL – Hold on For Dear Life) Bitcoins for extended periods. The idea behind this strategy is that Bitcoin prices will most likely rise significantly in the long term. You can sell Bitcoin at a higher price if you buy today and hold it for months or even years.
The HODL strategy is different from Bitcoin trading in terms of time. While Bitcoin trading is primarily a short-term investment strategy, HODL is a long-term strategy. If you aren't in a hurry to reap from the small Bitcoin price increases, then HODL is your ideal strategy.
The Bottom Line
You can benefit from Bitcoin's volatility through Bitcoin day trading or HODLing. Either way, you can gain much if you make the right moves. Day trading is a short-term way to benefit as you will reap from buying Bitcoin at a lower price and selling at a higher price on the same day. Whether you go for short-term or long-term strategies, the bottom line is that you will benefit from Bitcoin's volatility.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes
What is a semiconductor? An electrical engineer explains how these critical electronic components work and how they are made