Several volatile cryptocurrencies are available on the market. Investors need to be aware of them!
Many investors are interested in cryptocurrency, but their volatility is keeping many away from the market. According to experts, the newness of cryptos is one of the reasons for their volatility. New concepts take time to stabilize and be accepted, and cryptocurrencies are no exception. Globally speaking, digital currencies have gained prominence in the last few years, but they’re not winning over investors to choose them as an asset like gold or equity. Given the lack of understanding and rules, currently, crypto trading is highly speculative. Investors should always be on high alert before investing in these volatile cryptocurrencies. This article has listed some of the most volatile cryptocurrencies that investors should always be aware of before buying.
- Bitcoin: Even though bitcoin is the oldest cryptocurrency in the market, it is also one of the most volatile. In the past couple of months, after its market value surged, BTC not only benefitted its investors but also spiked the value of the global crypto market. Yet, it cannot be overlooked that BTC remained one of the most volatile cryptocurrencies for nearly half the year.
- Ethereum: Ether is ranked as the second-largest cryptocurrency in terms of market cap. ETH has already outperformed its biggest rival, Bitcoin in the 2021 price rally. But the crypto has gone through a bumpy road and has experienced swings in its process. Having started from over US$730 per currency unit in early January, it has rushed and shown a subsequent growth, unlike several other cryptos.
- Ripple: Ripple was created to provide a cheaper and faster payment option for international transactions. But its value is being considered as volatile as its price swings quite often. In November 2020, the crypto surged by 170% amid rising concerns of the SEC case against the network. But it might have prevented the crypto from reaching impressive peaks this year. But we should also not rule out positive changes after the successful handling of the ongoing issues.
- Litecoin: The price volatility of this bitcoin companion is also worth mentioning. However, LTC prices have significantly pulled back from the record-breaking mark of US$412 that reached in May. But the crypto has managed to grow after this dive. Even after its volatility, several investors still consider LTC as a suitable altcoin for long-term investments.
- Shiba Inu: Earlier SHIB was only popular as a meme coin, but it has gained a dedicated fanbase over the years. Shiba Inu was launched in the mid of 2020 and has exceptionally low-price value. So, it has enormous growth potential. Initially, the crypto rose to prominence after it was listed in some of the top crypto exchanges. Recently, early in October 2021, oddly after a tweet from Musk about his new Shiba Inu puppy, the crypto rose 300% on the first day of the month.
- Dogecoin: Dogecoin was launched in 2013 after the Shiba Inu dog went viral. Its price volatility created a plot twist of 9530% within a year. The coin owes its quick success to the tweets made by Elon Musk and its listing in Coinbase. Several sports clubs have also accepted it for fan tokens which have boosted its popularity in the market. DOGE is highly volatile as its price is dependent on its influencers and investors.
- Dash: Dash is popular among investors as a bitcoin alternative. The crypto focuses on improving financial transactions and ensuring that the banking services reach the poor and unbanked. The coin reached from US$66 in January to US$440 in May 2021. Right after this rally, its prices fell to US$120 and remained around US%160. The volatility index of crypto in 2021 is 1251%.
- Bitcoin Cash: It is a fork of bitcoin created to increase the block size. The crypto aims to improve the transaction speed and make investors look beyond bitcoin. The value of the crypto reached US$340 in early January this year. In 2021, its volatility index reached 1030%.
- Solana: SOL’s recent price rally made it one of the top five cryptos in the global market. In 2021, its volatility index reached 7183%. The crypto is enjoying a strong year as it has grown by over 12000% since 2020. Its record was set in September 2021. SOL provides several advantages, including low transaction fees, which attract most of its investors.
- Celo: Celo is a blockchain ecosystem focused on increasing cryptocurrency adoption among smartphone users. By using phone numbers as public keys, the crypto hopes to introduce the billions of smartphone users in the world to transact without access to banking and regulations. Even though it has high aims, it is one of the most volatile cryptocurrencies in the market.