During the events of the pandemic, as the global economy crashed and struggled to survive, there was one single market that not only survived the ordeal but actually flourished in it – the cryptocurrency market. Ever since its humble start in 2009 with Bitcoin, where the market barely had a valuation of a few dollars, the cryptocurrency market has now increased to an enormous value of $1.85 trillion!
According to erecoin.io, this value is only bound to increase in the future with the advent of new cryptocurrencies in the market. The website goes in-depth about these new altcoins, their future, and their profit potential, and also on various other related topics such as the most expensive cryptocurrency and the best cryptocurrency to invest in, in today’s date.
While cryptocurrencies are considered to be the most profitable investments in the investing world, they also suffer from one major disadvantage which makes many investors shy away from investing in them. That disadvantage is their volatility. Cryptocurrencies are infamous for being extremely volatile and changing values in the blink of an eye.
While many cryptocurrencies are considered more stable than others, there are a few that have an extremely volatile nature attached to them. Many short-term investors would want to stay away from such investments and if you are one of them, then you are in the right spot. In this article, we will list the top most volatile cryptocurrencies right now that you should avoid investing in unless you are ready to take major risks. These cryptocurrencies are –
Stellar
What was started as a protocol in 2014 to transform digital currency into its fiat counterpart has now become a full-fledged cryptocurrency with its own market? However, that is not what Stellar is most famous for. In all of the cryptocurrency investing circles, Stellar is often quoted to be the most volatile cryptocurrency investment in this year.
Stellar’s market value is regularly known to suddenly rise out of the blue and just as suddenly dip in value at the slightest of market changes. Stellar is also one of the most unique cryptocurrencies which have introduced it as a competition to other popular cryptocurrencies like Ripple or Cardano.
In this month alone, i.e. August 2024, Stellar has seen a volatility change of almost 38k points with a volatility rate of14000%! This value change volatility is what keeps most stable investors away from investing in Stellar and this will continue until Stellar gets a drastic technological reform.
Ripple
Often considered to be the digital currency of the future, Ripple is one of the most influential cryptocurrencies with probably the most profit potential out of all the cryptocurrencies in the world. However, that profit potential comes with its own disadvantage and that is its volatility.
Ripple has seen an immense value dip in recent years but just this year in 2024, it has been steadily rising in value and has had a value growth of about 352%. Ripple has defied the expectations of all cryptocurrency experts and left them baffled about the currency’s future.
This is the reason why many professional investors choose not to invest in Ripple because they are always clouded in doubt whether their investment will return them profit or loss. However, there are also many investors that have high hopes for RIpple as it is one of the few cryptocurrencies that doesn’t require mining.
Ethereum
The crown of being the most valuable cryptocurrency belongs to Bitcoin but there is one cryptocurrency that has the potential to overtake Bitcoin as the leading cryptocurrency of the world and that crypto is Ethereum. Ether’s blockchain has already become the most used blockchain in the cryptocurrency market and it is considered to be the largest cryptocurrency by market capitalization.
Yet, it is also one of the most volatile currencies out there. Etheruem has had a volatility rate of about 4800% making it very unstable in value. While it generally increases in value at a steady rate, it is known to dip from time to time much to the dismay of all the investors who invested in it. Since it’s so popular, one small change inspires thousands of investors to make a move resulting in a sudden crash or a sudden hike.
That being said, Ether is still considered a good investment as long as you watch the market closely and invest in it at the right time. Ethereum has been known to return amazing returns for its investors because of this same volatility and can do the same for you if you invest wisely.
Bitcoin
Bitcoin, the king of all cryptocurrencies, is one of the most widely known and used cryptocurrencies out there. It comprises more than half of the cryptocurrency market and sees millions of investors investing in the cryptocurrency every day. Bitcoin is perhaps also the only cryptocurrency whose value has seen the most dramatic rise in the history of cryptocurrency.
What started as a fake currency that was barely worth a few cents has now reached a value of $60k this year. Those who invested in it early have received immense profits from the success of Bitcoin and this commercial success has attracted thousands of investors to invest in the market.
But that is exactly why Bitcoin is so volatile. Due to the high number of investors and Bitcoin still being relatively young, it is prone to the most drastic changes in value. Taking this year as an example, Bitcoin hit a value spike of $60k in April but after Tesla announced that they are going to discontinue using Bitcoin as a valid form of payment, Bitcoin’s market value crashed dramatically.
In July it hit a new low of $29k, but as of the moment we are writing this in August 2024, it is now on a steady hike again and currently has a value of $45k which is projected to increase in the future and hit a new peak value. These instances only go to show that Bitcoin is an extremely volatile crypto investment and investors should only proceed with it at their own risk.
Conclusion
Cryptocurrencies are volatile by nature and it is your responsibility as a wise investor to figure out the most volatile cryptocurrencies and decide if you want to invest in them or not. We hope this article helped you do just that and if it did, please consider following our website for regular updates as it will help us out immensely.
