@Cryptopotamus
hang on… I have 2 points here
-
firstly, Bitcoin has 14 times for volatility… does it ? ok, this can be debated, but i’ll leave ti unchallenged.
the point is… 14x more volatility , but you need to consider this… it is worth approx 8x Less pip for pip.
so your 14x goes down to around 6x for the record even though 600% of something is still a lot , you gotta compare apples with apples -
Next… Are you telling me that the volatility of EURUSD over 30 days was basically a straigh line LOL
because if that’s true and bitcoin has 14x higher volatility with respect to EURSUD, then , the result should be… The same pattern on Bitcoin and is on EURUSD only 14x higher in amplitude
you can’t have one be a straight line and the other a wave, that just doesn’t make sense,
there are not even enough bumpy bits AT THE RIGHT PLACES on EURUSD to even justify that its’ only a straight line because it’s 14x smaller
Mate, keep in mind i own an Oscilloscope ok
is this chart even credible or is it one of those things where they came out and said “pip for pip bitcoin is worth THOUSANDS OF TIMES MORE than Major Currencies” which clearly is not true.
i don’t question you, for the record, i question the chart, this cant’ be right
I’m not sure what point you’re trying by showing the chart.
My own first thought was "Unless you have very deep pockets or can completely separate emotions from trading, Bitcoin is so volatile that the roller coaster of trading it and the likelihood of losing make it a terrible choice for most traders"
I know potential rewards can be high, but these wild movements are unacceptable for many.
Would be interested to hear other opinions
I guess the underlying principle is that Forex has a basis in reality
What happens when you hold the contacts, one probe in each hand and observe the screen ?
@Falstaff
well now , this question can go in so many directions… can’t it ?
first of all there is only 1 probe and not 2,
but i imagine you are referring to the Ground clip, hence there is a main probe that is taking a reading with Reference to the Ground Clip
ok
so what happens
well… on what Time Scale
i mean at 10sec/Div and 10 Volt /Div You’re going to get some minor ripple
at 1 sec/Div and 1V / Div You’re going to see ripple, definitely
at 100ms/Div and 500mV/Div the screen will fill up with ripple
i mean, i suppose the answer you’re looking for is… NOTHING WILL HAPPEN… RIGHT ?
but that’s not technically true
so… Where are you going with this
the point was that if EURUSD is 14x less than Bitcoin in Volatility , then the waveform should consistantly be 14x lower in amplitude , not a straight line
so… where are you going with this ?
Not at all, adjust the scales until something very definite does happen - give it a try !
@Falstaff
i did
and now what
where are you going with this, i mean i’ve been using a scope since the 80’s, it’s not like i don’t know how to use a scope.
what are you getting at
are you getting at the time scale of BITCOIN vs EURUSD or what
or maybe when considering 14x less or more volatility but not looking at the correct resolution
can you get to the point (Just saying)
Just joshing mate
No, I’m not telling you what the reality is - maybe someone who owns an Oscilloscope will come along and tell you - maybe they won’t - but I have my answer - r
Fair enough
i wasn’t sure where you were going with that for a second,
but of course if you look at something at at say 10sec per Div and 10V/Div and you see a line
then you drop down to say
1uSec/Div and i don’t know say 100mV/Div yeah, you’re gonna see something now matter what even from placing the proble on the bench from the shear bump somethings gonna happen.
ok be cool
Nope - one probe in each hand, (or "ground clip in one if you only have a single probe) - you see something really interesting ! - better with 1/10 second per division or less Say 0.01 second - though !
ok i cracked out the DSO again
100ms/Div
1.00 V/Div
i even cracked out the frequency counter and Avg Voltage
and the result with one probe in each hand
at that resolution
you get an approx (not stable) frequency of around 3 - 4 KHz
Amplitude Avg Voltage 60mV
hence at 10sec/Div
10V/Div
you get a line… a bit of thick line but a line regardless
and now… ??
what was the interesting thing you were referring to ?
The beautiful 50 Hz sine wave varying from 2.5 Volts up to the largest I ever had was about 24 Volts.
Happens every time
oh… i thought it was something different you were going to get at hehe
ok then… No worries
Both are two different instruments. Comparison is illogical. Trading is all about what you understand the most. Not just based on how much it is volatile. Suppose I trade based on technical analysis. For me I don’t get much data of Bitcoin. Then how I will analyze it? Just because it is increasing oe decreasing you can’t buy that unlese you know what you are doing.
Interesting graph, @Cryptopotamus!
The key takeaway point from it is that if you trade EUR/USD with 14:1 leverage (approximately 7,142.86 euros in your account for every standard lot of 100,000 euros you trade), then you will experience volatility on that trade comparable to someone trading bitcoin with 1:1 leverage (i.e. without leverage). How many people do you know who trade EUR/USD with 14:1 leverage?
The volatility of cryptocurrencies such as bitcoin has certainly grabbed headlines over the past year. By contrast, major currency pairs such as EUR/USD are notable for their relatively low volatility even when compared to other more exotic currency pairs such as USD/ZAR. At the time of this post, the average daily volatility of USD/ZAR (1.54%) is almost double that of EUR/USD (0.78%) over the past ten weeks: https://www.mataf.net/en/forex/tools/volatility
Though not as dramatic a volatility difference as the one you highlighted for bitcoin, it is still reflected in the higher minimum margin requirement the CFTC and NFA have set for USD/ZAR (5%) compared to EUR/USD (2%). FOREX.com UK* applied a similar rationale in setting minimum margin requirements for the bitcoin pairs we offer (BTC/USD, BTC/GBP, BTC/EUR and BTC/AUD) at 25%.
Leverage magnifies gains and losses, which is why we emphasize how margin requirements should be set by regulators and brokers (and in the case of futures by exchanges as well) by taking into account the perceived risk of a given currency pair, or cryptocurrency pair. Traders should also evaluate their own risk appetite and financial situation to determine what amount of leverage is appropriate whether trading major currencies, exotic currencies or cryptocurrencies.
*Spot bitcoin trading is not available to FOREX.com US clients at this time, but US residents now have access to bitcoin futures trading.
Agree with you, its like you are comparing Apples to Oranges.
Here’s something interesting…
“When it comes to wild price swings, all the action is with the technology giants – not Bitcoin. The spread between the 10-day volatility of the NYSE FANG+ Index of global tech stocks, which includes Alibaba Group Holding Ltd., and that of the digital currency is at a record high, according to data compiled by Bloomberg”
Good day fellow members. I’m Joyce and I’m still newbie in Binary trading though 20%-30% of knowledge. But, lacks and finding it difficult on how to trade bitcoin binary. Please Help Help!!!
Thanks beloved
Sorry for being completely off subject, but why is your username Richard and your name is Joyce?
Probably because husband and wife are one.