Dear readers! In this article I would like to talk with you about why cryptocurrencies are so volatile and how they can avoid volatility. I will also survey the chart of DeepOnions and make appraisal of its reliability.
There are a lot of investors who do not want to invest in cryptocurrencies because their prices are too volatile. There are no gradual steps of the fluctuations. For example, price of some cryptocurrency can be $500 on one day, and $50 on another or vice versa. Thus, investing in cryptocurrencies is too risky and sometimes risk/return trade-off is not fair. So, how can investors determine which cryptocurrencies are better to invest. The answer is very simple – cryptocurrencies that are less volatile and in turn, less risky. Of course, like all other cryptocurrencies DeepOnion is also volatile, but in my opinion, it is not as volatile as other leading cryptocurrencies. Volatility of the price of DeepOnions lasts only in the short-run. In the long-run it is pretty stable and progressive. If you look at the charts, you will easily see that there are no huge fluctuations in the change of the price. It is clear that price of DeepOnion is increasing gradually. Sometimes it is making some kind of corrections in the price and then returns to the initial state. The long and the short of it, DeepOnion belongs to those cryptocurrencies that are less volatile and thus, it is better investment destination than those cryptocurrencies that have huge price and market share.
The question is, why cryptocurrencies are so volatile? The answer might be very eclectic. First of all, it is worth mentioning that cryptocurrencies are newly appeared and therefore, people around globe have little understanding of what they are. It is true that cryptocurrencies are getting more and more prevalent, but there is a short list of those people who are actually investing and using them. When people do not have proper knowledge and understanding, they are not able to appropriately make investment appraisal. Therefore, they very often make wrong decisions, like they sell cryptocurrencies when they do not have and vise versa. Therefore, their wrong decisions, their obscure expectations adversely affect the price stability of cryptocurrencies.
When all people use cryptocurrencies, there will not be so huge fluctuations, because then cryptocurrencies will be deemed by all people as real money and therefore, supply and demand of cryptocurrencies will be balanced and that`s where volatility of cryptocurrencies partly disappear.
As for now, I strongly recommend to invest in DeepOnion, because it is highly progressive, reliable and less volatile cryptocurrency.