Volatile is a term that indicates that the crypto market can peak and fall within a short period of time. An increase or decrease of € 500,- of € 1.000,- within 24 hours is common and can be considered normal. It is the differences of abnormal proportions compared to the ‘balanced’ equity market. The crypto market is extremely sensitive and can be influenced by news items and emotions. After all, these are also the biggest reasons why prices fluctuate.
In a time of ‘fake news’ it is difficult to control the emotions when the price drops due to negative messages which have not been confirmed. On the other hand positive ‘fake news’ has a smaller impact on the price. If you respond cleverly to it, you can make money from it. ‘Buy the rumour, sell the news’! Buy during the rumour, as price rises and sell before it is confirmed as price falls.