Post
Topic
Board Trading Discussion
Re: What Is Bitcoin Trading and Why It's risky?
by
Chris!
on 28/11/2016, 21:58:02 UTC
Bitcoin trading is really risky because of volatile price.

Not this again. Volatility DOES NOT equal risk. It's like saying "high temperatures are bad"; well, try to cook a meal in cold water...

Literally every single piece of financial literature on the planet contradicts your statement. Why? Maybe because of the very definition of Volatility which is:

"Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security."
http://www.investopedia.com/terms/v/volatility.asp

In other words bitcoin going up and down 10% is somewhat volatile whereas bitcoin rising 1300% in 2013-2014 is very volatile. Trading altcoins in very very volatile. Make sense?