Why crypto prices move
A plain explanation of why crypto prices change so quickly, and what volatility means for you.
Crypto prices can move a lot in a short time. That movement is called volatility.
What moves the price
- Supply and demand. More buyers than sellers pushes the price up, and the reverse pushes it down.
- News and sentiment. Regulation, big company moves, and market mood all matter.
- Liquidity. Thinly traded assets move more on small trades.
- The wider market. When Bitcoin moves sharply, many other coins follow.
What this means for you
- The rate you see for a buy or sell can change quickly, which is why Coinwaka locks the rate for a short quote window.
- Stablecoins like USDT are designed to stay near one dollar, so they move far less than Bitcoin.
- Only buy what you are comfortable holding through ups and downs.
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This article is educational and is not financial advice. Crypto is volatile and trading involves risk.