Analysts: Crypto Market Volatility Will Only Become More Extreme in 2021

The world of cryptocurrency trading has been unpredictable from day one, but recent years have witnessed unprecedented volatility. This is mainly a result of investors shying away from other, more traditional, investment venues during the year of the pandemic. However, this isn’t the first time that Bitcoin and its peers have demonstrated such turbulence. With that in mind, it is interesting to hear that financial analysts from the online trading brand Maxwise predict that volatility will continue – and even rise – in the second half of 2021.

In times like these…

“There are several reasons to believe that this topsy-turviness is going to continue,” they told us, “and the most prominent one among them is the fact that while in some places around the world the COVID-19 seems like a distant memory, in others it is still a reality. This means that the interest in traditional markets is going to keep swinging and, subsequently, the cryptocurrency market is bound to feel it as well”.

We asked Maxwise’s experts for some tips on how to reduce risk and stay relatively safe during these times of uncertainty. Here are some tips they provided us:

• Always be careful even if there's no volatility.
• Trade slower. Let the waves calm down a bit before diving deep.
• Timing is important. Make sure you are constantly monitoring the performance of markets.
• Don't try to jump on every opportunity. Changes are happening every hour, and there are a lot of risks associated with it. Try to come up with your research method first.

Turn the lemon into a lemonade

There is a way to turn this volatility into an advantage. CFD (cost for difference) trading has become very popular in the cryptocurrency sector. The volatility makes short-term trading more attractive, which is much simpler when trading CFDs. Also, with many brands offering CFD crypto trading, competition over clients results in very attractive offers on their behalf.

With that in mind, you must make sure you choose a reliable trading brand to work with, as there are many unprofessional providers out there. MaxWise is an online trading solution trusted by thousands around the world, mainly thanks to their competitive rates on existing and emerging coins. Their web-based platform is also easy to navigate through and is accessible from most devices and operating systems.

The Maxwise staff, including its service representatives and business analysts, have been carefully screened before selection. That’s why it is not recommended to take the projection brought here light-heartedly. Nobody can predict every single move in the market, but nevertheless, the report which this data is taken from is a result of months of careful work. In short, expect a very unpredictable year for digital tokens, and be prepared for it.