The last two years have been a whirlwind that has left everyone baffled and stunned. Even the most stable and upcoming sectors have faced a setback, and the economy is not an exclusion. People tend to turn to alternatives when the usual channels shut down, and enter cryptocurrencies. Even though there has always been a huge craze for digital currencies, this trend spiked up in the past few years.
One important rule of thumb about cryptocurrencies is this – they are unpredictable and highly volatile. This factor tends to be the reason that many people hesitate to invest or trade in cryptocurrencies. Volatility in cryptocurrency is the measure of how much the value of one specific crypto changes over time. The more a currency is volatile, the riskier it is considered.
When there is significant turbulence in the stock market, the value of cryptocurrencies sways dangerously. In this article, we’ll take a look at a few of the most volatile cryptos so far in the year 2023.
1. Stellar (XLM)
An open, enterprise blockchain, Stellar has been engineered to connect financial enterprises so as to make large transactions between them easier. The blockchain’s currency is Lumens (XLM) and one has to possess these to make transactions on the network. It is a network where one can create, trade, and send different types of cryptocurrencies.
One among the top 10 cryptocurrencies by market capitalization, Stellar is predicted to have a solid future despite being one of the most volatile cryptos on the market. With numerous digital currencies being quite expensive, Stellar’s price still stays below $1. In the last year, this crypto has gone through a roller-coaster ride – from as low as 6 cents to a peak of 77.8 cents, it has been a rocky road.
Despite this high volatility of Stellar, holding on to it through the risks can be rewarding soon. Due to its partnerships, this crypto has great potential of peaking up. To learn more, you can click here.
2. Ripple (XRP)
Ripple is a peer-to-peer trust network and it is the company behind the XRP cryptocurrency. It was designed so that payment transfers across international boundaries can be undertaken effectively. In 2023, Ripple has had a solid growth; around April this year, the price of XRP had spiked about 352%. With the legal issues faced by the company, there could be severe volatility in future.
Ripple faces several severe issues which it has to overcome in order to achieve higher prices. Risk management and traceability remain to be major setbacks of this digital currency. In a matter of a few days, XRP’s price surged up from 61 cents to $1.96 in the month of April. Soon after, it faced a fall of 6%.
As per the charts suggest, the volatility of Ripple is high, and it will continue to be so if the legal problems faced by the company continues. Still, as a digital currency, Ripple is predicted to grow tremendously. Know more about this trend by visiting crypto-genisus.com/pt.
3. Ethereum (ETH)
Ethereum is the decentralised software platform that hosts the crypto ether. The second most valuable cryptocurrency in the market, Ethereum’ volatility also sways largely. In 2023, Ethereum crushed Bitcoin with a return of around 750%. Due to the energy-efficient nature and flexibility of its blockchain, Ethereum has risen to popularity in the past years.
The volatility of this crypto is highly impacted by the rise and fall of the stock market. Experts suggest that there is a possibility that we are currently in a crypto bubble where the prices of cryptos like Bitcoin and Ether are overvalued. If the bubble bursts, then the prices of these cryptos could sink drastically.
Around March, Ether faced a hard fall when the stock market saw a sudden plunge of 30%. A few days after this, the digital currency lost almost half of its value. So, Ethereum might be a trustable investment, but it is still unpredictable.
4. Bitcoin (BTC)
The one supreme leader of the crypto world, Bitcoin has been always known for its volatility. Currently priced somewhere around 29,000 USD, the popularity and the demand of the digital currency are the reasons for its volatility too. Unlike other cryptos, the fall of price when it comes to Bitcoin happens in thousands of dollars, which is quite scary for new investors.
In April 2023, Bitcoin hit an all-time high of nearly $65,000, but soon in June, it tumbled down to $28,911. With the first half of 2023 being a wild ride for this popular crypto, the same trend is expected to continue throughout the year. The biggest problem that Bitcoin seems to face is the lack of regulation.
While many see volatility as a red flag for investment, some people consider it as a golden opportunity. By remaining aware of the market movements, one can make significant profits within a very small time frame, compared to those who invest in cryptos for several years.
5. Litecoin (LTC)
One of the top 10 cryptocurrencies of all time, Litecoin was created by creating the footsteps of Bitcoin, but it still precedes the former in certain technologies. It also tends to be highly volatile, and the reasons for its volatility are almost the same as that of Bitcoin’s. In one period, Litecoin climbed from $20 to $140 and plunged back to $20.
Statistically, it has been proven that Litecoin is even more volatile than Bitcoin. Its dramatic volatility might prove to be highly advantageous for investors who are looking to make hefty gains. The data over years shows that Litecoin has always been unpredictable, its prices rising and falling massively.
The gaining popularity and the limited number of tokens make Litecoin a valuable cryptocurrency that has great potential.
Although there are thousands of investors and traders jumping into the world of cryptocurrencies every day, this is a concept that still has a long way to go. The above-stated are some of the largest digital currencies that are currently soaring in the market. The lack of regulation for these currencies remains to be an issue and it is also one of the biggest reasons for the rapid rise and fall in the values of several cryptos.
So, before you jump in and pour all your money into the puzzling world of cryptocurrencies, research thoroughly. Who knows, you might even become a millionaire with the right moves!