Cryptocurrency is the practice of exchanging cryptocurrencies with other assets, either fiat currencies or other cryptocurrencies, in an attempt to profit from the price fluctuations that occur between each buy or sell order.
The asset class of cryptocurrencies is a speculative set of assets, which is the reason behind their notorious volatility. Because there are very few ways to come up with realistic valuations for these assets, the push and pull of buyers and sellers primarily drives price action.
Due to the wild volatility, investors often get sick of holding through downtrends or come to understand the profit potential they’re leaving behind by not buying low and selling high between each major swing.
Those who bought during the bull market as investors, commonly switched to trading during the bear market to both increase their BTC or other crypto holdings, while also either maintaining or even increasing USD capital all the while.
