ETFSwap is a decentralized investment platform that’s revolutionizing ETF investments by merging traditional finance with blockchain technology. Read more here.

In 2024, the fusion of traditional finance and blockchain technology has set the stage for a revolution in the way investors access and trade 

 (ETFs). With major financial institutions like 

, the momentum for crypto-based exchange-traded funds has never been stronger.

ETFSwap is poised to capitalize on this trend by offering a decentralized platform that integrates the stability of ETFs with the flexibility of 

 (DeFi). In this article, we’ll explore what makes ETFSwap the most anticipated crypto presale of 2024, and dive into its features, road map and potential to revolutionize ETF investments within the crypto ecosystem.

 is a decentralized investment platform that’s revolutionizing ETF investments by merging traditional finance with blockchain technology. Built on the 

 standard, it empowers users to securely trade, stake and manage tokenized ETFs within an anonymous ecosystem.

An exchange-traded fund (ETF) is an investment fund that holds a collection of assets — such as crypto, stocks, bonds, commodities or a mix of these — and trades on stock exchanges throughout the trading day, much like individual stocks.

ETFSwap was founded by a team of blockchain pioneers and financial experts who identified a pressing need to democratize access to institutional-grade ETFs. They recognized that the traditional ETF market was ripe for disruption, with prohibitively high barriers to entry and limited flexibility in terms of investment options.

To address these challenges, the ETFSwap team set out to create a platform that leverages blockchain technology in order to offer greater accessibility, security and efficiency to people looking to invest in ETFs. After years of research, development and testing, ETFSwap was launched in 2024 to set new benchmarks in the tokenized ETF market.

ETFSwap is designed to address the limitations of traditional ETFs by bringing them on-chain. Its primary goal is to eliminate the constraints of centralized trading platforms that often limit investor accessibility, especially in the crypto market.

The platform empowers users by enabling seamless trading of tokenized ETFs, direct conversion between cryptocurrencies and ETFs, and complete control over their investments — all without relying on intermediaries.

ETFSwap also seeks to create a seamless connection between traditional finance and blockchain-based DeFi, making it easier for retail and institutional investors to diversify their portfolios. Through this integration, ETFSwap strives to democratize ETF access, enhance financial inclusivity and provide innovative solutions to existing market challenges.

ETFSwap operates as a decentralized platform built on the 

 blockchain and uses the ERC-20 standard. Its core mechanics revolve around tokenizing traditional exchange-traded funds and enabling these tokenized assets to be traded seamlessly within the crypto ecosystem. Let’s look at how the process works.

The tokenization process is at the foundation of ETFSwap's operations, whereby traditional ETFs are converted into digital assets represented by ERC-20 tokens. This innovative process allows these ETFs to be traded, staked or managed on a decentralized network.

 (DEX) protocol to facilitate trading. This DEX allows users to buy and sell tokenized ETFs directly from their 

 without the involvement of intermediaries.

The entire process on ETFSwap is governed by 

 that automatically execute terms of each agreement, directly written into code. These smart contracts handle everything from transaction execution to staking rewards, in order to ensure all processes are automated, transparent and tamperproof.

 model in which users can contribute their assets to the pool in exchange for rewards. This model facilitates efficient trading, helps maintain price stability and reduces transaction 

. The liquidity users provide is crucial for enabling seamless 

 and supporting the platform's decentralized nature.

ETFSwap integrates advanced cryptographic techniques such as 

 to safeguard user data and maintain anonymity. This approach ensures that while transactions are validated on the blockchain, their specifics remain private to protect user identities.

ETFSwap offers a range of innovative features that combine traditional ETF investing with the advantages of blockchain technology. These attributes enhance liquidity, provide investment flexibility and offer advanced trading options within a secure, decentralized platform.

The swap functionality is ETFSwap's core feature. It enables users to directly exchange cryptocurrencies for various tokenized ETFs. Users can apply the ETFscreener to search for specific ETFs and then execute a swap to add the desired ETF to their portfolio.

Deep liquidity pools ensure minimal slippage and competitive rates, allowing investors to adjust their portfolios quickly as market conditions change. The platform’s swap feature cuts out intermediaries and lowers transaction costs, giving users the flexibility to make swift investment moves in a fully decentralized environment.

ETFSwap offers a robust staking program that incentivizes users to hold and lock their ETFS tokens (the native utility token of ETFSwap) within the platform. By staking their tokens, investors can earn an attractive 

 (APY) that varies depending upon the assets staked.

ETFSwap distinguishes itself by providing advanced trading instruments, such as 

 contracts. These financial derivatives allow investors to use sophisticated trading strategies to hedge against market volatility, speculate on price movements and/or diversify their investment portfolios.

By integrating these advanced trading features, ETFSwap caters to both novice investors seeking diversification and experienced traders looking for sophisticated tools to manage risk and optimize returns.

ETFSwap’s road map outlines key milestones focused on expanding the platform and enhancing user value.

The initial stage of ETFSwap's development focuses on building a solid foundation for the platform. Key milestones include:

In the second stage, ETFSwap aims to expand its reach and enhance user engagement through several initiatives:

This stage focuses on the critical milestones related to the presale and official token launch:

In the final stage, ETFSwap will focus on scaling its operations and introducing innovative features to the platform:

Every decentralized platform needs a native token, and for ETFSwap, that’s ETFS. Built on the ERC-20 standard, ETFS drives the platform’s ecosystem and supports seamless user interactions.

The ETFS token has a total supply of 1 billion, strategically distributed to ensure long-term sustainability and ecosystem growth:

The ETFS token plays a vital role in the ETFSwap ecosystem, with several key functions:

 model to increase its value over time. A 1% buy tax on all ETFS token purchases is directed to a 

 wallet to reduce the total supply and create scarcity. Additionally, a 5% sales tax is allocated to a rewards pool to be distributed among token holders and liquidity providers, further incentivizing participation in the platform.

Predicting the future price of ETFS involves considering various factors, including market trends, platform adoption and the overall growth of the crypto ETF market. Given the increasing interest in crypto ETFs and in ETFSwap's strategic approach, many analysts anticipate a positive outlook for ETFS in the coming years.

Some market predictions suggest that ETFS could experience significant growth, with potential returns for early investors ranging from 

. These bullish forecasts are based on the platform's innovative features, deflationary tokenomics and the growing demand for decentralized ETF solutions.

ETFS could be a promising investment, thanks to the project's robust road map, innovative tokenization of ETFs, advanced trading options, deflationary tokenomics structure and other unique features. These combined elements may attract the crypto community and potentially enhance the token's value over time.

Major financial institutions’ interest (such as 

) in the crypto ETF market also signals a strong future for the decentralized investment platform space. As the anticipated crypto ETF boom hits, the demand for platforms like ETFSwap will likely surge, making the ETFS token a valuable asset for investors.

However, given the volatile nature of cryptocurrencies, it’s still important for users to 

ETFSwap is set to significantly impact the investment landscape by bridging the gap between traditional ETFs and DeFi. With its innovative features, deflationary tokenomics and commitment to enhancing accessibility, it's easy to see why the ETFSwap presale is among the most anticipated in 2024.

Intermediate

ETFSwap (ETFS): The Most-Anticipated Crypto Presale of 2024

Sky is a decentralized finance platform that evolved from MakerDAO (DAI). Learn how the new platform works in this article.

Sky, formerly known as MakerDAO, is redefining 

 (DeFi) with a significant transformation of its ecosystem. By introducing new features and upgraded tokens, Sky aims to enhance accessibility and drive the next era of DeFi adoption.

This article explores Sky, its history and the reasons behind the rebranding from MakerDAO. We'll also examine how the platform works, its key features, road map and new tokens, and evaluate whether SKY is a good investment in the evolving DeFi space.

 is a decentralized finance platform that evolved from MakerDAO (DAI). As the new front-end application for the Sky Protocol ecosystem, it offers an upgraded 

 system, native token rewards and a more accessible governance structure to drive the next era of DeFi adoption.

Users of Sky can interact with the protocol's features in the following ways:

Sky's roots trace back to MakerDAO, one of the pioneering projects in the DeFi space. Founded by Rune Christensen, MakerDAO introduced the concept of a decentralized 

 (DAI) backed by cryptocurrency collateral. The project gained significant traction and became a cornerstone of the DeFi ecosystem.

As the DeFi landscape evolved, the team behind MakerDAO recognized the need for further innovation and improvement. This vision led to developing the "Endgame" plan, a comprehensive strategy to enhance the protocol's capabilities and ensure its long-term sustainability.

The rebranding from MakerDAO to Sky is part of the broader Endgame strategy. According to the project's FAQ, the rebranding serves to:

Transitioning to Sky represents more than a name change — it's a fundamental shift in the project's approach to 

 (DeFi). By retaining the core principles of MakerDAO while introducing new features and a more intuitive user experience, Sky aims to bridge the gap between traditional finance and the world of DeFi.

Some of the key objectives of Sky include:

Sky operates on principles similar to its predecessor, MakerDAO, but with enhanced features and mechanisms.

Sky offers a range of innovative features designed to enhance user experience and provide new opportunities in the DeFi space.

Sky enables users to trade popular cryptocurrencies for ecosystem tokens using 

 and noncustodial pools. Users can exchange 

 and SKY for USDS, and vice versa. The platform utilizes smart contracts powered by CoW Swap to ensure efficient and secure transactions without relying on centralized entities.

Users can access Sky Token Rewards (STRs) by supplying USDS to the Sky Token Rewards module. This noncustodial feature allows participants to earn SKY 

 over time, with no minimum USDS amount required.

The reward rate fluctuates based on the token issuance rate, market price and the user's proportional supply in the pool. Subject to governance approval, users may also receive future rewards in the form of various Sky Star tokens.

The Sky Savings Rate is an evolution of the former DAI Savings Rate. It allows USDS holders to earn additional USDS over time by supplying their tokens to the SSR module. This noncustodial feature requires no minimum supply amount, and offers flexible withdrawals. The SSR is a variable rate determined by Sky ecosystem governance through decentralized on-chain voting.

Users can supply SKY tokens to the Activation module to accumulate Activation Token Rewards as USDS or various Sky Star tokens. SKY supplied to Activation doesn’t support delegation or voting, and users can activate or deactivate their SKY anytime without restrictions or fees.

Sealed Activation will enable users to seal their SKY or MKR governance tokens in order to accumulate higher Activation Token Rewards than with simple Activation. Users can delegate their voting power while their tokens are sealed. Unsealing incurs an Exit Fee, which increases over time and is set by Sky ecosystem governance.

SkyLink is an upcoming feature designed to connect Ethereum-based tokens and features to support 

 (L2) networks. This integration aims to enhance users' ability to manage their digital assets more efficiently by providing access to lower-cost platforms, which is especially beneficial for those deterred by high Ethereum 

Sky Stars are independent decentralized projects within the Sky ecosystem. Each Star operates with its own governance token, treasury and decision-making processes. Sky Stars serve as engines of scalability and innovation, enabling focused, fast-moving development and expansion.

, is already a top DeFi lending platform with over $2.5 billion in 

The Sky Atlas is the comprehensive set of rules governing the Sky ecosystem. It's a living document that evolves through improvement proposals and decentralized voting until governance determines no further modifications are necessary. The Atlas ensures that governance is shared among a diversified community aligned with the ecosystem's goals.

The Sky road map highlights recent achievements, and outlines ambitious plans for continued innovation in the DeFi space.

Sky Protocol’s road map emphasizes its commitment to decentralized expansion, continuous innovation and cross-chain 

. As the ecosystem grows, each new Sky Star is expected to develop its own road map — creating multiple threads of parallel, decentralized innovation and growth.

Sky introduces two tokens to offer enhanced functionality and opportunities for users.

SKY is the rebranded and upgraded version of the MKR token. It serves as the governance token for the entire Sky ecosystem.

USDS is the upgraded version of the DAI stablecoin.

Users can upgrade their tokens through the Sky platform. The process is voluntary, and legacy DAI and MKR tokens will continue to exist within the renamed Sky Protocol.

Following are the key aspects of SKY’s tokenomics.

The initial distribution of SKY is directly tied to existing MKR tokens:

It's important to note that some features, including Sky Token Rewards and the Sky Savings Rate, may be restricted in certain jurisdictions, including the U.S. and U.K.

, with analysts predicting SKY’s price to reach $0.0854 by the end of 2024, $0.4186 by 2028 and $0.9205 by 2030.

As SKY is a newly introduced token following the rebranding, specific price predictions are speculative and should be cautiously approached. Investors should conduct thorough research and consider the high volatility of cryptocurrency markets before making investment decisions.

Investing in SKY involves weighing potential benefits against inherent risks.

Before investing in SKY, investors should 

 and possibly consult financial advisors.

Sky builds upon MakerDAO's legacy to introduce a more accessible, innovative and decentralized platform. With its ambitious road map and plans for expansion across multiple blockchains, Sky is well-positioned to continue pushing the boundaries of DeFi.

sky protocol.png

Sky (SKY): Supercharged Upgrade of MakerDAO & DAI

Meme coins were created as a joke, and DOGE proved that a joke could be worth more than what you've expected. Here are the top meme coins that have taken the internet by storm.

 is the need to evaluate the actual value and utility it brings about. As the cryptocurrency landscape becomes saturated with meme coins, which often don’t have real value and are highly speculative, it has become even more difficult for investors to determine which cryptocurrencies are worth investing in.

What are the top meme coins in which you can invest? What’s the next meme coin that’s going to make it big? In this article, we’ll look into the top ten meme coins in the cryptocurrency market now.

 with no inherent value or utility. In most cases, these 

 are themed around internet memes — images from social media platforms that can be humorous in nature.

Meme coins differ from cryptocurrencies primarily due to their lack of utility. Cryptocurrencies such as 

 (BTC) were created to tackle problems of centralization, serving as a peer-to-peer (P2P) payment method. 

 (ETH), on the other hand, is a platform that allows developers to create a series of 

 (DApps), and has flourished because of the growth of 

Meme coins tend to rise and fall sharply due to online hype, support by influencers and even orchestrated bot-driven campaigns. One recent example of a highly hyped coin is 

 (PEPE). Launched in April 2023, the PEPE coin is themed on the exceptionally popular early 2000s internet meme Pepe the Frog, created by artist Matt Furie. The coin's launch and subsequent promotion were driven by a large-scale campaign on social media, with many of the accounts touting PEPE believed to be bots.

From its launch in mid-April 2023 to late May 2024, the PEPE coin increased in price by over 8,600%. Although PEPE continues to be among the most popular meme coins, , but by September 2024, its value is half of what it was at its peak in May. However, PEPE is among the lucky meme coins that have managed to hang on to most of their initial gains. The vast majority of other meme cryptos fall to virtually nothing even after stratospheric initial gains — and these initial gains aren't at all guaranteed. For instance, it's recently been estimated that 

 fail to attain even the very modest $69,000 in market cap to qualify for a 

There could be myriad reasons why crypto enthusiasts choose meme coins. However, three primary drivers stand out:

What Contributes to Meme Coins’ Notoriety?

Meme coins gained popularity through the support of influencers in the cryptocurrency industry, celebrities and investors whose actions drive the price higher during a short period of time. In general, meme tokens or coins are often seen as jokes circulating on social media platforms, and their prices typically crash after surging (

although a very small proportion manage to thrive in the long term).

Probably the most high-profile case of meme coin promotion by a celebrity or otherwise influential figure is Elon Musk's multi-year online romance with 

 (DOGE). Since early 2019, the tech mogul and world's richest person has been posting occasional tweets supporting the oldest meme coin in existence. In April 2019, Musk 

 of 25 million followers at the time, "Dogecoin might be my fav cryptocurrency. It's pretty cool." 

However, it was his series of 2021 tweets that really boosted the price of DOGE. After Musk's late April 2021 tweet in support of the cryptocurrency, DOGE surged immensely, attaining its highest levels ever in early May. Throughout 2021 and beyond, Musk's favorable and typically facetious tweets have contributed to Dogecoin's unrelenting popularity in the meme coin world, despite this crypto's lack of meaningful utility.

Since meme coins lack fundamentals and have little to no inherent value, the primary aim of trading them is to sell short when their price surges. Nevertheless,

 some of these assets have successfully survived years of skepticism and/or expectations of an imminent crash. 

 schemes, there are still a few that might be worth your time.

Meme coins are indeed volatile and highly speculative, yet there are investors who refuse to sell them. So, which meme coins are genuinely worth your attention?

Launched in 2013, Dogecoin is the world's first top meme coin, and remains the largest meme coin by market cap today. The brainchild of two developers (Billy Markus and Jackson Palmer), DOGE was themed around a cute Shiba Inu dog, Kabosu, whose memes were gaining substantial popularity online at that time. Markus and Palmer launched the coin as a joke, underscoring the widespread belief that cryptocurrencies had no meaningful utility. Little did they (or nearly anyone else at that time) know that DOGE would go on to become one of the crypto market's most prominent assets, laying the foundation for the burgeoning meme coin market years later.

As of the time of our review on Sep 25, 2024, Dogecoin is in the top 10 among all crypto assets on the market. The confident multi-year leader among meme coins, DOGE features a market cap of $16.1 billion, ranked #9 in the cryptocurrency world. DOGE also holds slightly over one-third of the entire meme coin category's total 

 of $45.3 billion, as estimated by the CoinGecko portal. By now, its dog-themed logo is one of the most-recognized images — not only in the world of crypto, but also in the entire online universe.

As of our review date, DOGE is trading at $0.11. You can buy DOGE on Bybit as a 

For seven long years following the launch of Dogecoin, the meme coin space remained a deserted place. That all changed in 2020 with the arrival of another dog-themed meme coin, 

 (SHIB). Floated on the market in August 2020, SHIB quickly became a viable competitor to DOGE, capitalizing on both the similarity of its Shiba Inu–themed images and its active promotion on social media.

Shiba Inu has a couple of significant differences from Dogecoin. It was the first meme coin that was actively hyped online upon its launch, setting an example and precedent for other meme coin projects to do so. This was in contrast to Dogecoin, which waited for years after its launch to be discovered and hyped. In addition, unlike Dogecoin (and similar to many other meme assets), Shiba Inu wasn't launched on its own dedicated blockchain. Instead, it was created as an 

Because it was the first meme coin to be widely promoted at launch, Shiba Inu quickly established its position as a major cryptocurrency (though not quite at the level of Dogecoin). It currently has a market cap of around $8.8 billion, giving it a rank of #2 among meme coins and #16 among all cryptocurrencies. SHIB's is currently trading at $0.00001494, and can be bought on Bybit as a 

Launched in April 2023 and inspired by the Pepe the Frog meme from the 2000s, the Pepe (PEPE) coin has been the most stark example of an incredibly hyped-up meme coin. Its online promotion was driven by numerous social media posts and reposts from user accounts, many of which were believed to be bots.

Similar to many other meme coins, Pepe's founder(s) remained anonymous when the coin was launched. In August 2023, some crypto news outlets 

 the project's founder was identified as landscape photographer Zachary Testa.

PEPE was launched with a colossal supply of around 420 trillion units, with each coin worth a minuscule fraction of a cent. Despite expectations of the coin's imminent crash during its market presence, PEPE has survived for nearly 1.5 years as of the time of writing, and has amassed the third-largest market cap ($3.64 billion) among meme coins.

Currently, it’s trading at $0.000008661. Although there have been bold statements online about the coin reaching $1, such a price is unlikely to materialize. You can buy PEPE on Bybit as a 

 (WIF) is another Shib Inu–themed meme coin, this one wearing a hat. It currently holds the distinction of being the highest-capped 

 (SOL)-based meme coin. While Dogecoin was launched on its own chain, while meme coins such as SHIB and PEPE are based on Ethereum, a new wave of 

Launched in November 2023, WIF is one of the earlier coins representing this wave. While the vast majority of these Solana-based assets have failed to gain any traction in the market, WIF has been a rare success in this area: during its 10-month history to date, the coin’s value has increased by over 42,000% and holds a market cap of $2 billion. WIF's current trading price is $2.04. It can be purchased on Bybit as a 

Inspired by Floki, Elon Musk's Shiba Inu, the 

 (FLOKI) meme coin dubs itself "The People's Cryptocurrency." Launched as a classic meme coin, it has now developed functional use cases in areas such as gaming and DeFi.

FLOKI is a multichain asset with contracts on both Ethereum and 

 (BNB). In mid-2024, it was reported to have close to half a million users on BNB Chain, officially making it the platform's largest meme coin asset. FLOKI's current market cap stands at $1.39 billion, and it’s trading at $0.0001436. You can buy FLOKI as a USDT (

 (BONK), yet another dog-themed meme coin, was launched in December 2022 and is among the first Solana-based meme assets. It was one of the earliest contributors to popularize Solana as a meme coin heaven. Bonk has grown rapidly, establishing its presence on multiple other blockchains, among them Ethereum, BNB Chain, 

Just like some other popular meme assets, BONK was launched with a massive per-unit supply, in BONK’s case 93.5 trillion. Cryptocurrencies with such overwhelming supply figures typically have minuscule per-unit prices. The coin's price is currently $0.00001909, and although some of its most enthusiastic promoters and supporters believe that BONK could reach $1, it's unlikely to happen unless some form of enormous supply 

 is carried out. The coin's market cap currently stands at $1.3 billion.

BONK can be purchased on Bybit as a USDT (

) Spot pair, or as a USDT Perpetual contract (

 (POPCAT), another Solana-based meme coin, was inspired by the internet meme cat named Oatmeal. POPCAT claims the title of highest-capped meme coin themed after a feline. In the sea of mostly Shiba Inu dogs, this is a refreshing change.

Introduced in December 2023, Popcat is among the most successful meme coins, having appreciated by 8,650% compared to its launch price. Popcat currently sits at a market cap of $1 billion, and is trading at $1.05. You can buy POPCAT on Bybit as a Spot pair (

 (BRETT) is a meme coin built around Brett, one of the key characters from artist Matt Furie’s popular 

 series. The series features four main characters, including Pepe the Frog and Brett. Brett and Pepe are actually great friends in the series' storyline, and the BRETT coin's February 2024 launch was undoubtedly inspired by the success of the PEPE meme coin.

, a leading Layer 2 network linked to Ethereum. The meme coin holds the distinction of holding the platform's highest market cap at $875 million, and is currently trading at $0.088. It can be bought on Bybit as a USDT (

Another cat-themed representative of Solana, 

 (MEW) was created to challenge the dominance of dog-themed meme coins in the space, and seems to have rapidly edged closer to its goal. Launched in March 2024, MEW pumped by 385% to hit a price of $0.0097 within three days, during which its market cap reached approximately $848 million. While this figure has since receded to $560 million, MEW remains among the top ten largest meme coins in market cap.

MEW currently trades at $0.006275 and can be bought on Bybit as a USDT (

Neiro (NEIRO) is the first Neiro-themed meme coin launched on Ethereum. Like many other Neiro-themed meme coins, NEIRO was created in a bid to replicate the popularity of Dogecoin (DOGE), as the owner of Kabosu has recently adopted a ten-year-old Shiba Inu, Neiro, in late July 2024.

The ERC-20 NEIRO token was launched in early August 2024 at a low of $0.000002438, and traded at that level for about a month. But from September 16 onward, it experienced a price rally that led to an ATH of $0.001327 on Sep 24, 2024, recording an extraordinary increase of over 54,000%. Its current price is $0.001183 with a market cap of $497 million, surpassing many older, more established meme coins, such as 

NEIRO can be bought on Bybit as a USDT Spot pair (

Most meme coins are highly speculative, and have no intrinsic value. Therefore, plenty of risks are associated with this field of cryptocurrency, particularly for investors. 

In addition, meme coins are highly volatile, and pump-and-dump schemes are a common occurrence. Therefore, investing in meme coins might be more exhausting than investing in traditional financial markets, as no regulation is implemented. However, investors can take advantage of the wild price movement to have fun and ride the wave following the social media buzz. 

If you intend to invest in meme coins, you’ll need to monitor their price movement closely by taking advantage of the surge in demand. As always, don’t invest more than you can afford to lose. Investors should understand how market corrections work — instead of jumping on the bandwagon when cryptocurrencies are at their all-time highs. Trend reversals take place all the time, and they can occur in a split second. 

While most of the established financial markets have recovered post-pandemic, meme coins beg to differ. If your risk tolerance is low, an investment in meme coins might be the last thing you need in your portfolio.

Compared to established cryptocurrencies, meme coins are relatively new in the crypto market. Dogecoin and its peers have strong growth potential. Savvier investors can take advantage of these crypto coins, riding the price momentum from bottom to top.

Despite their potential, meme coins are still a risky investment, due to their focus on meta humor and community attention, rather than financial performance. 

Diversifying your portfolio is a way to reduce market risk in a given sector. As with other investments, if you invest in meme coins, make sure to take their risks into account.

meme coins.png

10 Top Meme Coins to Watch in 2024

Learn what drives crypto volatility and discover strategies to manage it, from portfolio diversification to hedging, emotion-free investing, and utilizing smart order types like stop-loss.

The volatility of the crypto market is often thought to be on a scale of its own, with Bitcoin (BTC) and other cryptocurrencies frequently going through head-spinning price roller coasters. In the past few years, the world's leading cryptocurrency asset (and the primary gauge of the overall crypto market's performance), the BTC coin, has experienced wild price swings. In March 2022, having just begun to recover from the catastrophic losses of the November 2021 crash, Bitcoin entered a multi-month steep decline, losing nearly two-thirds of its value between late March 2022 and early November of the same year.

More recent times have also witnessed Bitcoin's well-known volatility. Between early October 2023 and late March 2024, the cryptocurrency appreciated by 174%, a rate of growth that sounds nearly surreal to a stock market investor. By the time of this writing (Sep 12, 2024), Bitcoin has lost around 21% of those March 2024 highs and continues to demonstrate significant volatility. 

What drives the volatility of Bitcoin and the overall crypto market — and how can investors shield themselves from it? In this article, we take a closer look at crypto volatility and the best ways to manage it.

The volatility of a financial asset is defined as the rate of variation in its price over a specific period of time. Assets with high price volatility are characterized by more pronounced and frequent price fluctuations. More volatile assets are also considered riskier from an investment perspective. However, as any market participant knows, higher risk levels also mean higher return opportunities. In fact, in financial markets, volatility is synonymous with risk.

Volatility is typically measured using the 

, which shows an asset's typical magnitudes of change within a defined period. Normally, this volatility is expressed as a percentage.

Crypto Volatility vs. Traditional Market Volatility

The crypto market's typical volatility is considerably higher than the average volatility of stock markets, and often exceeds the volatility of commodities markets as well. Even Bitcoin, which is considered far less volatile than smaller-cap 

, has much higher volatility levels than traditional financial assets. While Bitcoin's one-year volatility may be declining, as shown in the chart below, it still stood at around 40% as of April 2024. In contrast, the one-year volatility of gold, global equities (ACWI IMI) and U.S. bonds (US Agg) was around 10% in April 2024, four times lower than that of Bitcoin.

The key factors contributing to the crypto market's higher volatility in comparison to traditional markets include:

Sentiment plays an important role in any market, but is particularly influential in crypto markets, as they have lower barriers to entry compared to stock markets. For instance, on many 

 (CEXs), you can start investing with just a few dollars and no identity or residence verification requirements. As a result, many novice retail investors have joined the crypto market. These investors often lack the expertise to conduct a thorough 

 of the market. As a result, they’re often driven by sentiment, particularly social media sentiment and online news.

The relatively younger age of crypto investors compared to stock market participants also makes them more prolific social media users, and social media is the primary source where emotions, hype, opinion and other elements of sentiment around crypto assets are forged. Just ask Elon Musk, one social media influencer with a penchant for swaying sentiment around assets like Bitcoin and Dogecoin (DOGE).

The first, rudimentary crypto markets began to emerge around 2010–2011. As such, the crypto market is at most 14 years old. In comparison, trading in stocks has been around for a few centuries, while commodities markets have existed for millennia. The immaturity of the crypto market means that its defining properties and rules are still being actively developed.

Compared to traditional markets, the crypto market has low levels of regulation, although this is slowly changing. In the aftermath of the 

, regulators in the U.S. and across the globe have enacted, or are in the process of enacting, laws that would better regulate crypto trading and investment. For instance, in 2023, the U.S. Securities and Exchange Commission (SEC) 

, opening the way to bringing investment in these assets under regulatory control. The 

 in the U.S. in early 2024 has also made many analysts confident about the further stabilizing of crypto prices as more mainstream investors get exposed to Bitcoin.

However, the crypto market in general continues to be much less regulated than stock markets, which acts as one contributor to its notorious volatility.

Macroeconomic indicators like inflation rates, central bank interest rates, GDP growth rates, major free trade agreements and more have the potential to significantly affect the volatility of the cryptocurrency market. In part, this is often caused by the reallocations between asset classes initiated by large institutional investors. As a response to macroeconomic data and forecasts, these investors might shift funds between crypto and other asset classes, such as bonds, stocks or commodities. Since the crypto market has much less liquidity than traditional markets, any such reallocations can greatly affect it.

Unlike the stock market and other traditional markets, the crypto market is open 24/7 and experiences no interruption to its trading processes. The continuous nature of the market also contributes to its volatility.

Some order types and techniques can be particularly useful in 

 and digital assets. These include stop-loss orders, take-profit orders, position sizing and put options.

 orders come with an instruction to buy or sell an asset when it reaches a certain level, known as the stop price. These orders are widely used to minimize potential trading losses, and can be highly useful for limiting losses in the high-volatility environment of the crypto market.

 orders instruct traders to close a trading position when they achieve a pre-specified profit level. While stop-loss orders are used to minimize losses, take-profit orders are designed to protect profits.

 refers to the number of units a trader allocates to a specific position, taking into account their overall portfolio and 

. In high-volatility markets, position sizing can help you avoid losses resulting from overreliance on a single asset or position.

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ETFSwap (ETFS): The Most-Anticipated Crypto Presale of 2024

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Sky (SKY): Supercharged Upgrade of MakerDAO & DAI

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