Have you ever checked your app and got goosebumps? Because the crypto market has taken a dip with a decline of around 10% in the space of 24 hours? Let's be honest: it feels brutal.
The article you can read below is the result of a collaboration between The Crypto School and Kaupr, for increased and better knowledge of crypto.
First, let's paint a picture for you
Think of the real estate market and the stock market as big cruise ships. They are large, heavy and stable. When a wave hits, they shake a little, but stay the course.
The crypto market, on the other hand, is like a small sailboat. It is light, vulnerable, and even a medium-sized wave can tip the entire boat to the side. When big players decide to sell, we notice it immediately. And that's why we can experience a 10% drop in just one day.
And let's be honest...
... it often feels like this isn't entirely coincidental. When the market is falling so synchronously and brutally, it's hard not to suspect that there lies a good dose of manipulation behind the scenes.
The big players are pulling the strings, and the small investors are feeling it first.
Volatility is just a nice word for “how much and how fast the price moves up and down”.
And it is precisely this volatility that makes crypto so scary, but also so exciting.
To give you a picture:
Understanding Volatility
Crypto is like a stormy ocean. Fast, unpredictable and sometimes scary. But precisely this also provides opportunities. Because we are in a market that is not globally established.
Do not react in panic.
Many people make the classic mistake: sell in fear and buy again when it “feels safe.” The problem is that it almost always means selling low and buying high.
Look at the market with patience.
If crypto is a sailboat, you're the captain. You can't control the wind, but you can adjust the sails.
Ask yourself
Is this a threat or an opportunity? Many of the strongest upswings in crypto history have started right after big falls, as a move into “risk-on mode”.
This can be stressful...
... but remember, crypto is not about winning today or tomorrow. It's about building knowledge and trust so you can stand up to the storms.
The Crypto School is established to make cryptocurrency and crypto trading accessible, understandable and usable for everyone. The crypto school's goal is not just to provide you with information — we want you to apply your knowledge with confidence and confidence. This article is the result of a cooperation between Kryptoskolen and Kaupr about increased and better knowledge of crypto.