Why are crypto exchanges prone to insolvency?
Why is it that crypto exchanges seem to be so prone to insolvency? Is it due to the volatile nature of cryptocurrencies, or are there other factors at play? Are there any regulatory measures in place to prevent this from happening, or are exchanges largely left to fend for themselves? It's important to understand the risks associated with trading on these platforms, and how investors can protect themselves from potential losses.
Which cryptocurrencies are prone to volatility?
Could you elaborate on which cryptocurrencies tend to exhibit a high degree of volatility? Are there specific characteristics or factors that contribute to this? Is it generally the newer or less established cryptocurrencies that are more volatile, or are there established coins that are also prone to significant price fluctuations? Additionally, how does the market sentiment and news surrounding a particular cryptocurrency affect its volatility? Understanding the reasons behind the volatility of various cryptocurrencies is crucial for investors to make informed decisions.