Bitcoin versus the S&P500! Why is volatility so important? Volatility is always an opportunity for the trader and investor. But what is it?
Volatility is the ability of price to change in % over a period of time. Buying Bitcoin and the S&P500 at the same time close to the lows you would earn +$400 and the S&P500 +$130. The same with short positions. Volatility helps a trader to earn more!
The price of Bitcoin has been very dependent on the S&P500 lately. Bitcoin is down by 52% from its ATH and up by 47%. The S&P500 is down by 14.6% and up by 13%.
Why such different changes in price and how to make money on it? It's all very simple! The total value (capitalization) of the S&P500 is about $40 trillion. The value of all Bitcoins is about $0.9 trillion. Let's imagine that the S&P500 and Bitcoin gained +1 trillion dollars to their value. The S&P500 price would rise by +2.4% ($41 billion) and Bitcoin by more than 100% ($1.9 billion).
I have been in trading for a very long time and I can tell you that your INCOME depend on your skills. If you have a trading strategy, use trading tools, money management and risk management, you can earn more.
Friends, if you still have questions, leave a comment or write to DM!
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P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.