How To Get the Most & Least Volatile Cryptocurrencies (2024)

FAQs

How do you make cryptocurrency less volatile? ›

Invest in stablecoins

Another option for avoiding crypto volatility and protecting yourself during a market dip is to convert some of your (potentially volatile) crypto holdings for stable-value assets. Stablecoins are a type of cryptocurrency linked to a fiat (stable) currency, such as the US dollar - or even gold.

Ethereum (ETH): Safety In Size

Ethereum (ETH) is the second largest asset in the cryptocurrency market, and with huge market capitalization comes less volatility. Going by this logic, Bitcoin is the least volatile asset in the market, closely followed by Ethereum.

The volatility of Bitcoin can spike sharply in specific periods, which is an exciting trend in the trading world. Generally speaking, digital assets' prices move fastest in the morning and during the first half of the day. The most active period of trading occurs between 19 and 20 U.S. time.

Price and Volume

Up-to-date information about cryptocurrency trading is easily available online. Those digital currencies with increasing price and volume of trades are likely to be those that have momentum going forward.

Why Does BTC Fluctuate so Much? Bitcoin's price fluctuates because it is influenced by supply and demand, investor and user sentiments, government regulations, and media hype. All of these factors work together to create price volatility.

Any cryptocurrency that experiences frequent and large upward or downward movement in prices is said to be volatile in nature. Bitcoin — the first cryptocurrency to be created — is considered extremely volatile.

Ethereum (ETH)

It is the second-largest cryptocurrency after Bitcoin, with a market cap of about $224.5 billion. Ethereum is also one of the most widely traded cryptocurrencies, with an average daily trading volume of $8.6 billion. That makes the token one of the best cryptos for day trading.

What is the least known cryptocurrency? ›

What is the Best Day of the Week to Buy Cryptocurrency? The best day of the week to buy cryptocurrency is Monday when prices are the lowest. Sunday is the next best day of the week overall. After that, prices rise with Friday being the most expensive day to buy cryptocurrency.

Cryptocurrencies are most commonly traded between 8am to 4pm in local time. While the crypto market is 24/7, your trades are more likely to be executed when there is the highest level of activity. Outside of these hours, when trading is lighter, it can be more difficult to open and close trades.

Even if you plan to hold onto your cryptocurrency long-term, you might think about selling your asset—or a piece of it—if its value has increased by two or three times the amount you paid. In this case, you can sell the same amount as your initial investment or between 5 and 10% of your entire stack.

Crypto projects are influenced by a range of factors such as regulatory changes, economic conditions, market sentiment, geopolitical events, technological advancements, and investor behavior. These factors ultimately impact the supply and demand dynamics of cryptocurrencies and can contribute to price fluctuations.

The two most common derivatives used to hedge crypto trading positions are futures and options. Both allow investors to go long and profit when an underlying asset goes up in price or to go short and profit when it declines.