VOLATILITY AND LEVERAGE IN THE WORLD OF CRYPTOCURRENCIES by madridbg

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· @madridbg ·
$1.98
VOLATILITY AND LEVERAGE IN THE WORLD OF CRYPTOCURRENCIES
<center><img src="https://images.hive.blog/DQmTFUSWQ3KVr91vLE4CnRo6hUs5yhsK5W9PKq6RDkvNUuH/portada%20esta.png"/></center>

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<blockquote><center> Author: @madridbg, through Power Point 2010, using public domain images.<a href="https://pixabay.com/es/illustrations/gr%C3%A1fico-diagrama-recesi%C3%B3n-3078539/ " rel="noopener" title="This link will take you away from steemit.com"> Mediamodifier </a></div></center></blockquote></div>
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<div class="text-justify"> Greetings and welcome dear readers of this diversified blog, this publication is descriptive and analytical type, where we will seek to address two fundamental variables in the world of trading, as represented by the degree of volatility and leverage when entering the cryptocurrency market.
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<div class="text-justify"> As has been constant throughout my publications, this type of economic content, I usually share it through the community of @projecthope who are trending in topics of economic interest. 
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<div class="text-justify"> In this sense, talking about the cryptocurrency market implies having a holistic view of the behavior of these assets, because as the days go by, the dynamics of the global economy bets on a decentralized world that leaves aside the traditional economy, under the banking regulation systems. 
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<div class="text-justify"> Under the few limitations that are currently present in the cryptographic world, the growth of these has been sustained in this period of pandemic, which has generated a growing feeling worldwide on issues of regulation of the blockchain world. In the first instance the problems behind the expected regulatory framework are associated with volatility, overleveraging and manipulation of these assets, which has an impact on users' capital holdings. 
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<div class="text-justify"> From my perspective, volatility in these markets is here to stay and I believe it is the variable that most interests investors, who enter the market with the willingness to quickly grow their capital. However, it is to be expected that this variable also has repercussions in the opposite direction, where the corrections that we have observed generate a feeling of loss on our initial capital and more for those investors who are not used to protect their investments through orders and stop loss.      
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<center><img src="https://images.hive.blog/DQmYVDEbjPukQyS8FmdPwEhrQe9VDgZYrorF16HT765V2oX/imagen%202.png"/></center>

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<blockquote><center> Fig. 2. Proper risk management is crucial in digital markets Author: <a href="https://pixabay.com/es/vectors/bitcoin-dinero-criptomoneda-4851387/" rel="noopener" title="This link will take you away from steemit.com">  Megan Rexazin</a></div></center></blockquote></div>
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<div class="text-justify"> So if we analyze the different scenarios, we realize that despite the healthy corrections, the growth of assets exceeds 27.26% which represents a sustained increase compared to the traditional market and the stock or futures market, hence the world behind the bitcoin is so demanded in recent years.
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<div class="text-justify"> If we approach leverage, we realize that it is a double-edged sword, hence this type of investment demands a steel mentality with clear temporal focus and determined to meet short-term goals.  
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<div class="text-justify"> That is why a leverage equal or greater than 100x, implies a growing liquidation if the asset moves at least 1%, which in the world of BTC and cryptocurrencies this type of movements occur in a few seconds, after having generated an order.
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<div class="text-justify"> Thus, both volatility and leverage are closely related and dependent variables, which if not approached with caution imply substantial economic losses.
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<center><h2><strong> BIBLIOGRAPHY CONSULTED
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<center><img src="https://images.hive.blog/DQmTfA9UdM5wVkqRi7xjk1RGEB4LxXRiTfi3Yu8GpcBgZnH/separador.png "/></center>
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<div class="text-justify"><strong>[1] Gracia et al.  </strong> Factors influencing Bitcoin behavior and volatility.<a href="http://repositorio.uniagustiniana.edu.co/bitstream/handle/123456789/845/HurtadoCuellar-AngieDaniela-2019.pdf.pdf?sequence=1&isAllowed=y" rel="noopener" title="This link will take you away from steemit.com"> Article: Online Access </a></div>

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<div class="text-justify"><strong>[2] Michael McLeay, Amar Radia y Ryland Thomas.</strong> Money in the modern economy: an introduction. Journal of Institutional Economics, vol. 17. Number 33.<a href="https://www.redalyc.org/pdf/419/41943054015.pdf" rel="noopener" title="This link will take you away from steemit.com"> Article: Online Access </a></div>

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<center><h2><strong> OF INTEREST</strong></h2></center>

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•	<center> The design of the portal was made by @madridbg, using public domain images</center>

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@carlir ·
Hello friend @madridbg, certainly the world of cryptocurrencies is very interesting when it comes to trading, trading is not for anxious people on the contrary it is for patient people that allow them to analyze the market and know when to make their move.
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@benie111 ·
Hello friend..
From my point of view, Volatility is one basic feature of cryptocurrency and leverage is a feature of exchanging platforms. Leverage is adviced to be used by those who have in-depth knowledge of how it works, hence it might lead to huge loss. Meanwhile, a Crypto beginner can understand how volatility works right from the beginning of it's crypto journey.
Thanks
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@emiliomoron ·
Greetings friend, two very important variables to manage and keep in mind in the trading world. Since with cryptocurrencies, as well as in other markets, volatility plays an important role, as investors go looking for markets that move, which means assets with volatility. But traders know, or learn the hard way, that these variables must be approached with caution.
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