WAYS OF HANDLING BITCOIN VOLATILITY
MANY investors have yield immense return from Bitcoin, the world's greatest digital currency.
Market Analysts states some of the points below:
Small Market Base
Bitcoin market base just as other digital currencies, is relatively small opposed to traditional assets such as stocks, bonds and fiat currencies.
Low Liquidity
Cryptocurrency analysts states that, Bitcoin suffers from liquidity problems, which could in turn be contributing to bitcoin's sharp volatility.
Having less liquidity—instead of more—can potentially exacerbate price fluctuations, making it so that the digital currency's inevitable declines are more severe than they would be otherwise.
Regulation
Founded in 2009, several governments through their agencies have made efforts to regulate bitcoin, along with other digital currencies making regulation another potentially area contributing to bitcoin's intense volatility.