โProblem 1
As cryptocurrency looms larger in the public consciousness, volatility is a significant obstacle to its widespread adoption. A downturn in the market can wipe out an entire position in the blink of an eye. It happens too often to be ignoredโthe risks of investing in cryptocurrency are real, and they can result in heartbreaking losses. The general consensus is that if someone wants to invest in crypto, they should be prepared to lose everything.
Cryptocurrencies can be subject to bouts of high volatility due to their unique traits. These include limited liquidity and thin trading volume, which amplifies the effects of market sentiment on prices. GARCH research has provided valuable insight (by using a combination of historical observations) that can help understand the gravity of cryptocurrency volatility problem. Bottom-line : Volatility is the elephant in the room that no one can disagree with..!
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