What is the most volatile cryptocurrency?

Have you wondered lately what the most volatile cryptocurrency is? Why are some currencies more volatile than others, and what does the term “volatility” actually mean in the first place? Crypto enthusiasts and crypto investors worldwide are always looking for cryptos characterized by exceptional volatility for numerous reasons.

Right from the beginning, the cryptocurrency market has been volatile. However, during the last couple of months, that volatility has reached incredible highs. People eager to invest in cryptocurrencies should be highly aware that this particular market is rapidly growing.

Thus, it’s crucial to double-check what the most volatile cryptocurrency is before deciding and starting investing.

But, before we get to the point and explain which cryptocurrency is most volatile and provide you with the top 10 volatile cryptocurrencies at the moment, let’s get to know the true meaning of the term “volatile”, shall we?

Volatility – explained by professionals

While wandering about the most volatile cryptocurrency stored on Blockchain technology, keep in mind that cryptos are widely reversed investments. It means that even though two people might invest in the same cryptocurrency, one can lose money, while another can gain a significant profit.

The main explanation for it is that cryptocurrencies are experiencing extreme fluctuations in their valuation, which is known by the term “volatility”. Therefore, cryptos are considered a tremendous volatile investment.

There are speculations among one part of the crypto community that crypto’s value only comes from how much people are willing to trade it for other cryptos, fiat money, or goods in general. It is all about the law of supply and demand.

How to measure volatility?

A strict definition of volatility is a number derived from a study of prices over a specific timeframe, very often a month or a year. Volatility is known as one of the essential factors that are included in assessing investment risk. In order to measure volatility, there are two most effective ways:

• Using the “Beta” method to measure how volatile one stock on stock markets is relative to the broader market
• Computing an asset’s standard deviation represents how great its price has divergent from its historical average.

Cryptos for hedging against inflation

To truly understand volatility, before getting to know the most volatile cryptocurrency, you need to know that there are people who do not want to use cryptos as a currency. These enthusiasts are interested in cryptos only as an investment vehicle or use them as a hedge against inflation.

However, if nothing is backing up the value of cryptocurrency, the market’s value is strictly based on speculation. That’s primarily an educated assumption. Hence, investing in anything considered volatile is a surefire to introducing volatility into your high portfolio.

Speculative assets investments are typically like hot air balloon rides: you can enjoy the view from the top. However, once you realize that you’re exclusively suspended by hot air, you’ll understand that you might get off the ride without actually falling. When it comes to speculation, in often situations, what goes up, has to come down at one point.

Bitcoin’s example of volatility

Did you know that the value of Bitcoin dropped below 30% in just one day? Don’t get shocked. It is something expected on the market. From this example, we can see that cryptocurrency isn’t essentially valuable. Nothing is backing up cryptocurrency’s value.

There is a well-known graphic on “The Musk Effect”, or the incredible phenomenon of how greatly the value of Bitcoin gets affected by tweets of Elon Musk, known best as the CEO and co-founder of Tesla company and owner of SpaceX and Twitter. It is crazy how a single tweet by a famous and influential person can affect the value of your investments!

Let’s get back to the situation where the price of Bitcoin dropped 30% in 24 hours. Can you picture the situation of losing 30% of whatever amount you keep in your bank account in just one day? For that reason, we always recommend people to do deep research to understand what is the most volatile cryptocurrency at the moment, among others.

What are the top 10 volatile cryptocurrencies?

Learning the most volatile cryptocurrency will allow you to understand which crypto has the most significant potential for extreme upward downward moments over short periods.

Whether you’re interested in investing in currently less-known and thus, cheaper cryptos believing their value will increase over time, or you’d like to know which famous cryptos are volatile and might decrease in value, in both cases, it’s essential to know the following list!

Before getting to know the top 10 volatile cryptos in the last couple of days, keep in mind that this list is susceptible to change daily. Here are the top 10 cryptocurrencies in the past month:

Tether (USDT)

For those who were eager to find out what is the most volatile cryptocurrency, the answer is Tether (USDT). During the last 30 days, Tether was on the top of the most volatile chart. It’s crypto hosted on Ethereum blockchain and Bitcoin blockchain, among others. Tether’s tokens are issued by a Hong Kong-based company called “Tether Limited” under Bitfinex.

• Market cap: $80.46 billion
• Symbol: ₮
• Code: USDT
• 24Hr_Volume($): 48673441894.9
• Volatility(%): 0.040160244936282

Bitcoin (BTC)

Bitcoin is the well-known decentralized digital currency stored on Blockchain technology, and it’s in second place in the most volatile cryptocurrencies chart. It can be sent from one user to another on the peer-to-peer bitcoin network without a central bank, single administrator, or other intermediary bodies.

• Market cap: >US$775 billion
• Symbol: BTC, ฿, ₿
• Code: BTC, XBT
• 24Hr_Volume($): 38954586839.1
• Volatility(%): 0.45604069134611

Ethereum (ETH)

Known as an open-source blockchain decentralized with the functionality of a smart contract, it’s no wonder why Ethereum is among the top three most volatile cryptocurrencies. It’s second only to Bitcoin according to market cap. It was developed by programmer Vitalik Buterin back in 2013.

• Market cap: 361.296B
• Symbol: Ξ, ETH
• 24Hr_Volume($): 17858330820.1
• Volatility(%): 0.53863519139925

Bitcoin Cash / BCC (BCH)

Bitcoin Cash represents a cryptocurrency that’s a fork of Bitcoin, altcoin, or a spinoff invented in 2017. A year after its development, in November 2018, this crypto split further into two cryptocurrencies:

• Bitcoin Cash
• Bitcoin SV
• Market cap: $5,942,281,518.59; 1.80%
• Symbol: BCH
• 24Hr_Volume($): 4663785320.8
• Volatility(%): 0.6985758855755

Litecoin (LTC)

Litecoin is a famous peer-to-peer cryptocurrency and an open-source software project. It was released under the famous MIT/X11 license. It’s known as an early altcoin or spinoff of Bitcoin that appeared back in 2011. Litecoin is almost identical to Bitcoin according to technical details.

• Market cap: $7,314,016,924.13; 3.04%
• Symbol: Ł
• 24Hr_Volume($): 4652137508.67
• Volatility(%): 0.5187930408046

EOS (EOS)

EOS represents a blockchain protocol based on the cryptocurrency known as “EOS”. It refers to an innovative contract platform that alleges to eliminate all transaction fees. In addition to that, it controls millions of transactions per single second.

• Market cap: $2,331,138,594.62; 2.02%
• Symbol:
• 24Hr_Volume($): 3169156506.59
• Volatility(%): 1.102197355134

Ripple (XRP)

Ripple represents a gross settlement system that’s real-time. It’s a remittance network and cryptocurrency exchange created by a US-based tech company called “Ripple Labs”. It was released in 2012 under the ISC license on Linux, Windows, and macOS systems.

• Market cap: $33,038,315,927.37; 5.02%
• Symbol: XRP
• 24Hr_Volume($): 2288274492.86
• Volatility(%): 0.60208626179581

Ethereum Classic (ETC)

Ethereum Classic refers to a blockchain-based, open-source distributed computing platform. It features smart contract functionality. This particular cryptocurrency supports a modified version of Nakamoto consensus via transaction-based state transaction executed on a public Ethereum Virtual Machine.

• Market cap: 4.542B
• Symbol: ETC, Ξ
• 24Hr_Volume($): 1721049830.0
• Volatility(%): 0.76396497241234

Tronix (TRX)

Tronix, or better-known Tron, represents a cryptocurrency stored on a Tron blockchain platform. The TRON crypto platform supported different kinds of intelligent contract networks and blockchain networks.

• Market cap: 6.719B
• Symbol: TRX
• 24Hr_Volume($): 1440067264.55
• Volatility(%): N/A

NEO (NEO)

NEO crypto represents a community-driven, blockchain decentralized application platform that Erik Zhang and Da HongFei founded in 2014 under the MIT license. The point behind the NEO project is to realize a “smart economy” using smart contracts and blockchain technology to issue and control digitized assets.

• Market cap: $1,454,330,915.02 3.16%
• Symbol: NEO
• 24Hr_Volume($): 766900945.264
• Volatility(%): 0.75224577051384

Is volatility a good thing?

After getting to know what is the most volatile cryptocurrency, we’d like to give a proper answer to the often asked question, “Is volatility a good thing or not?” The short answer is: that it all depends on an individual’s tolerance for risk.

Someone who’s risk-averse will likely avoid high-volatility investments because they are all about stability and keeping their wealth. However, crypto enthusiasts eager to participate in the crypto markets are generally viewed as risk-takers.

Almost 60% of Bitcoin buyers are between 15 and 34, while males dominate cryptocurrency markets and decentralized exchanges by over 70%.

Conclusion

According to these statistics, it’s evident that young millennials are more likely to take high-risk investments such as cryptos, which isn’t likely for older counterparts. A more volatile market achieves more extraordinary price moves, providing more extensive opportunities for earning a tremendous rate of returns on investors’ investments.

Lesser volatility relates to lesser price movements. For that reason, there’s a lower probability of earning the required returns. The possibility of making tremendous amounts of money represents one of the biggest draws for countless investments in cryptocurrencies.

Knowing what the most volatile cryptocurrency is will, ultimately, be of the utmost importance to severe investors who are keen to make a lot of money on the market.