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September 10, 2024
Volatility: opportunities and risks for investors
Volatility is a major risk for investors because it causes rapid and unpredictable fluctuations in the value of their investments. This means that an investment that seems profitable today may suddenly drop significantly tomorrow. It can be difficult for investors without in-depth knowledge or experience to make the right decisions during these fluctuations. As a result, they risk incurring large losses. Moreover, high volatility can cause panic, leading to emotional decisions such as selling investments early, often at a loss. This makes it difficult to achieve stable and consistent profits.
Do you recognize this problem and want to know how to avoid it? Through this blog we briefly explain what volatility is and give an example of the volatility of bitcoin. Finally, we will tell you how Yieldfund can solve this problem for you.
What is volatility?
Volatility refers to the degree to which the price of a financial instrument, such as stocks, bonds or crypto-currencies, fluctuates over a period of time.
When a market exhibits high volatility, it means that prices can change rapidly and significantly. This can be either upward or downward, making the market unpredictable. Low volatility, on the other hand, indicates more stable and gradual price movements, meaning there are fewer large price fluctuations.
This can be amplified when influential people, such as celebrities, entrepreneurs or large investors, consciously or unconsciously influence the market (market manipulation). For example, when they make positive or negative statements about a cryptocurrency by social media, this can cause large price movements. This is because many investors take these statements seriously and base their investment decisions on them. We give an example in the next paragraph.
Example disadvantage fluctuations bitcoin
A good example of volatility is the fluctuation of bitcoin in late July 2024. The price of bitcoin shot from 54,000 euros to nearly 70,000 euros within a few days. These large price movements have stirred both investors and markets worldwide.
At the beginning of the week, uncertainty in global stock markets caused a drop in Bitcoin’s value, with the price falling below 54,000 euros. This decline was amplified by turmoil in Asia, where investors reacted to a troubling economic outlook and a decline in demand for risky assets. The falling prices in Asia created a domino effect in other markets, which temporarily reduced demand for Bitcoin.
However, mid-week sentiment quickly changed as Bitcoin’s price began to rise again. This recovery was largely attributed to former President Donald Trump’s unexpected support for cryptocurrencies. In an interview, Trump expressed his support for Bitcoin and other digital currencies, leading to renewed confidence among investors. Bitcoin’s share price shot up toward the 70,000 mark, fueled by speculation that the support of an influential political figure could lead to wider acceptance of cryptocurrencies in the United States.
These events highlight Bitcoin’s extreme volatility and how external factors, such as political pronouncements and global market turmoil, can quickly lead to large price movements. For investors, this volatility presents both opportunities and risks. While some can benefit from rapid price increases, others risk losses from sudden declines.
How can Yieldfund solve this for you?
Yieldfund offers investors a solution to the risks of volatility by investing in the top 100 cryptocurrencies. These cryptocurrencies are known for their greater liquidity and established market capitalizations, reducing the risk of large drops in value.
Yieldfund uses advanced technology and AI to trade 24/7, meaning market fluctuations are closely monitored. By continuously executing trades and managing positions, Yieldfund can respond quickly to market changes and prevent investments from suffering large losses. This protects investors from the sharp declines that often avoid in the volatile crypto market without having to actively trade or make decisions themselves during turbulent market periods.
The benefits of investing with Yieldfund
High profits and diversification
Yieldfund uses diversification to avoid high volatility by spreading investments across different assets and markets. By not putting all capital into one type of currency, Yieldfund reduces the risk of large losses that can be avoided due to market fluctuations or economic swings. This strategy provides more stable and predictable profits because the performance of different investments can offset each other during unexpected market fluctuations.
Stable profits of up to 5% per month!
At Yieldfund, you’ll receive weekly profits based on the contract you choose. For example, a three-year contract offers up to 5% profits per month, which amounts to more than 60% per year! This makes it an attractive option for investors looking for stable, high profits. Your weekly payouts are automatically transferred to your wallet, so you can immediately benefit from the growth of your investment.
One time investment
At Yieldfund, our investment plans are designed for maximum simplicity and convenience. With just one one-time investment, you start receiving automatic profits immediately, depending on the contract you choose. This makes investing simple and efficient, without having to constantly monitor the market or manage your investments yourself. At the end of the contract term, you will receive a 100% repayment of your initial investment (ROI).
In short, with Yieldfund you enjoy a worry-free investment experience, while we take care of the rest.
Ready to make your dreams of earning high profits come true? Invest today with Yieldfund and avoid a high probability of market volatility. Make your one-time investment and let us do the rest so you can sit back, relax and watch your income grow!
Disclaimer: The content of this article do not constitute financial or investment advice.
Yieldfund's last trades
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