As the popularity of the cryptocurrency market increases so does the volatility. The increased focus from mainstream media has led to an incredible surge in the number of people looking to invest. Many of my friends and family have long known about Bitcoin, but for the first time, I'm getting texts on a daily basis asking how to start investing. This user growth, while great for the future, has led to dramatic fluctuations in prices.
For the most part, I had adopted the strategy of buying and holding my coins, for fear of short-term gains resulting in less long-term profit. However, the nearly daily 20% fluctuations in major currencies such as Litecoin, Bitcoin, and Ethereum, present a renewed opportunity for day trading. Despite this, if you had held Litecoin over just the last seven days, you would have more than doubled your money and it is hard to imagine day trading leading to significantly larger gains.
I am curious as to whether anybody has shifted their investing strategy and is trying to cash in on this volatility or if you are sticking with a long-term strategy.