Volatility refers to changes in the price of an asset, such as cryptocurrency or stock. Low volatility means the price stays relatively stable over time, and high volatility means there can be more extreme sudden price movements in either direction.
Cryptocurrencies are known for their high volatility, but what causes it? Many of the same factors that cause volatility in the stock market also apply to cryptocurrencies, such as:
News events and speculation, including talk of government regulations or security breaches
Uncertainty of future value
Less liquidity in the market
Since crypto is a relatively new market, it takes less input from any of those factors to cause major swings in a cryptocurrency’s value. We’ve added Volatility Reminders to the cryptos we offer so you can make decisions with context.
If you ever have questions, the team is always here for you, so feel free to give us a shout on the app’s Chat or via email at support@public.com.
To trade cryptocurrency via the Public mobile app or website, you must first open an account with Bakkt Crypto. All cryptocurrency account, trading, and custody services are provided to you by Bakkt Crypto.
Cryptocurrency services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1890144) through a software licensing agreement between Bakkt Crypto Solutions, LLC (“Bakkt”) and Public Crypto, LLC. Bakkt is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not FDIC or SIPC insured. Bakkt Crypto Solutions, LLC is licensed to engage in virtual currency business activity and money transmission by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading. See here for Bakkt licenses and disclosures.