Compare Volatility Of Cryptocurrency To The Volatiltiy Of Euros

Compare volatility of cryptocurrency to the volatiltiy of euros

Compare volatility of cryptocurrency to the volatiltiy of euros

06.11.2017 12:21



Comparison of top cryptos by volatility


We compare top cryptos by volatility (price variability according to an average of a current value). Volatility is induced not only by new information on a specific cryptocurrency but also major traders’ efforts, who “move” its rate to sell their coins at a higher price and buy them later at a cheaper price.

Bitcoin Price and Volatility

It follows from the above that the cryptos with the lowest capitalization, usually, the youngest cryptos will have the highest volatility. Such cryptos as Ethereum or Bitcoin will be definitely more stable. Volatility is also affected to a great degree by a level of interest of rich traders to a particular cryptocurrency, cryptocurrency platform situation (price increase, flat, or decline), and overall “glass” depth of a particular trading pair.

Compare volatility of cryptocurrency to the volatiltiy of euros



While the price is growing, volatility can be also present. Volatility speculation can be easy due to an average price point going continually up, neutralizing the ineffective trading operations with “long” trading position (when the asset is bought in an expectation of its price increase).

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Evidently, such a volatility speculation during general price decline period can become risky enough.

1) Bitcoin (BTC) is the most capitalized cryptocurrency with pretty low volatility variables. If we take a look at a weekly chart indicating BTC/USD Bitcoin rate (Chart 1), we will see that in the context of price flat, daily rises and falls between the biggest and smallest price values did not surpass 2-4%.

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Weekly volatility can reach about 10%.

Chart 1. BTC/USD weekly rate

2) Bitcoin Cash (BCH) has a much greater volatility, which can be frequently charged with an overall price depression.

Compare volatility of cryptocurrency to the volatiltiy of euros

BCH/USD pair daily volatility comes close to 8-10% even in the context of flat price periods; in the context of active price move, price can change by 30-40% in just 2-3 days.

3) Though Litecoin (LTC) is less capitalized than Bitcoin, it is almost as stable as the last.

Compare volatility of cryptocurrency to the volatiltiy of euros

Daily rises and falls values do not usually surpass 2-5%. However, during “storm” price periods, LTC price can increase by 30-50%, which would be impossible for Bitcoin.

Comparison of top cryptos by volatility

Chart 2 shows LTC/USD monthly rate.

Chart 2. LTC/USD monthly rate

4) Ethereum (ETH) usually has the same daily volatility as Bitcoin, which makes 3-4%.

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In the context of intense activity on a crypto-platform, ETH differs from BTC by volatility; rate varies from 12-15% to 20-30%.

5) In the context of high crypto-platform activity, Ripple (XRP) can be characterized by a significant volatility; XRP rate can change by 15-20% in a day.

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In terms of a daily volatility during flat periods, it usually makes several percent. It can be higher depending on the major traders’ activity.

This is the third article from a ‘TOP 5 cryptos and their peculiarities’ series.

Bitcoin Volatility Time Series Charts

You can learn about new articles from this series and important updating through the official channels:  Telegram,  Facebook, Twitter.

Additional materials that may help you:

Anonymity of TOP 5 cryptocurrencies.

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Capitalization of TOP 5 cryptocurrencies.

Compare volatility of cryptocurrency to the volatiltiy of euros

Comparison

What are the pros and cons of investing into cryptocurrency

Advantages of purchasing and selling bitcoin on a cryptocurrency exchange

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Your respectfully, EXMO team

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