The words “Bitcoin” and “volatility” are almost synonymous and go hand-in-hand, however the introduction of the word “coronavirus” into the equation of volatility within the bitcoin market is a new occurrence.

Over the past months, the world’s financial markets have been rocked by the effects of the coronavirus, in mainstream markets, then the cryptocurrency market which has seen tremendous volatility and downward sell-off over the past weeks.

We’re taking a deeper look into exactly how all of this played out, and the effect that the novel coronavirus is having on the future price predictions of the cryptocurrency market, before taking a look at some of the best cryptocurrency trading platforms online for volatile conditions.

How the Coronavirus has Impacted the Cryptocurrency Market

Over the past few weeks the cryptocurrency industry has been reeling from the unprecedented crash in price is following the panic of the recent novel coronavirus pandemic.

Throughout most of 2019 we saw the market recover from a long bear market throughout 2018, to push upwards again towards the previous all-time highs, and then to gradually pull back from those levels towards the end of the year.

However, although the cryptocurrency market was already in a medium-term downward trend since the middle of the year, the rapid drop in Bitcoin’s price from roughly $8000 to $3900 took many traders by surprise, and reflected the intense fear throughout global money markets and stock markets worldwide.

Cryptocurrency is known for being a volatile asset class as it is, however, these levels of volatility over the past 6 to 8 weeks have been dramatically higher and more jarring then even the most volatile conditions of normal trading.

Is Volatility Good or Bad?

Depending on how you look at volatility within the cryptocurrency market, it will give you an answer to the question of whether or not volatility is good or bad.

The truth of the answer to this question is that volatility is neither good or bad, but instead presents a range of risks and opportunities, with the risks often being glaringly obvious to traders, yet the opportunities often being missed by the majority of the market.

During volatile there are opportunities to generate higher profits, being that the father that the price of an asset travels in one direction over a short period of time, the more profitable trading that asset can be.

There are a wide range of assets in the cryptocurrency market that are significantly undervalued today, potentially even including bitcoin itself, and with a bull run just around the corner following May’s Bitcoin halvening there is a good chance that investing into almost any cryptoasset currently will yield significant profits within the next 12 months.

Although within the crypto market there are a number of opportunities, there are even more opportunities currently in traditional financial markets, with oil having dropped by 70% and a wide range of the world’s leading currencies having been substantially sold down over past weeks.

Best Bitcoin Trading Platforms for Volatility

PrimeXBT

PrimeXBT is the #1 multi-asset margin trading platform online today, having spent the last 2 years expanding rapidly as a result of continual unique feature upgrades, as well as expanding the already wide range of listings for the cryptoasset and traditional asset markets on the platform.

PrimeXBT specializes in providing industry-leading margin trading services that spread across a wide range of asset classes, with leverage of up to 100X on all cryptoassets including BTC, ETH, EOS, XRP, and LTC, and leverage of up to 1000X on traditional assets including metals, commodities, stock indices, and forex pairs.

During high volatility PrimeXBT’s professional charting tools and powerful trading engine can handle the pressure of increased volumes of trades, allowing users to develop and maintain profitable strategies without the risk of system failure or glitches.

Not only does PrimeXBT provide the lowest fee schedule of any major cryptocurrency or traditional asset trading platform online, with a low flat rate of 0.05% across all assets and trading sizes, but also traders can access global financial markets totally KYC-free, without the need for anything more than signing up with an email address, which takes 30 seconds and maintains the privacy of all users.

Binance

Binance is one of the more well-known cryptocurrency exchanges online in 2020, having grown rapidly as a result of the expansion of their listings to include many different cryptocurrencies, as well as the appeal of using Binance’s native token, the Binance coin, in order to reduce trading fees by up to 25%.

While the platform does have one of the largest collections of cryptocurrency pairs, it comes with the drawback that there are no other kinds of assets that can be traded, including a lack of any kind of traditional assets available, and that no fiat trading pairs are available either, with only crypto-to-crypto trading pairs on the platform.

Also while Binance does provide discounts to trading fees using to BNB coin, and 25% off is significant, this doesn’t take into account the fact of Binance’s fees are in fact substantially higher than many other platforms in the industry, and, for example, even with the 25% reduction in fees, it can be up to 10 times more expensive than other platforms like PrimeXBT.

Saying this, Binance is a well-made platform that can handle the pressures of high intensity and high volatility trading, and this is much of the reason the Binance’s got the reputation that it has today.

How to Profit from Volatility

In order to profit from higher volatility, there are a few things that are needed, with margin trading, a wide range of assets to trade, and the right kind of order types, all being essential in the profit-making process during these kinds of conditions.

Margin trading is an essential tool at any point, however during high volatility is particularly important to have access to margin trading, being that margin trading opens up the ability to generate profit from downtrends through shorting, whereas without margin trading the only way of making money is by buying low and selling high.

As well as this, having access to a wide range of different types of assets increases the potential for accessing any one asset that is currently on the board or overboard, and subsequently can be ripe for an entry position to be placed.

Finally having the right kind of order types available within a trading platform is critical during volatile conditions, with the primary order type that’s required being stoplosses, which allow traders to create both long and short positions with the assurance that if the price moves in the opposite direction, especially considering that during volatile conditions rapid trend changes can occur regularly, that a maximum amount of loss will be set and no more than that will be able to be generated.

In Conclusion: Bitcoin, Coronavirus, Volatility

Never before has the cryptocurrency market experienced such a profound fundamental event such as the advent of the coronavirus pandemic, and never before have we seen the cryptocurrency market react so strongly to such a fundamental event.

As the lockdown and panic continues, we are continuing to see cryptoassets struggling to be able to recover from the shock of the past weeks and months.

Volatility within the marketplace presents itself as a huge risk to anyone who cannot see the true opportunities that lie underneath it, and with the use of effective trading tools and professional trading platforms, traders can in fact generate substantially more profit during this phase than is typically available during calmer waters.