Volatility is often the first word that comes up in any conversation about cryptocurrency. People say things like, “It’s too unstable,” or “How can I trust something that swings 20% in a day?” And to be fair, they’re not wrong—crypto is volatile. But does that mean it shouldn’t be taken seriously? Not at all.

At dcx, we believe volatility is part of what makes crypto exciting, but also misunderstood. Like any new technology, crypto is going through growing pains. The ups and downs are real, but they’re also a sign of progress. So, let’s unpack what crypto volatility really means, why it happens, how it compares to other markets, and why it’s not a reason to write off the entire space.

First, let’s define volatility. In finance, volatility refers to how much and how quickly the price of an asset moves over time. High volatility means prices change dramatically in short periods. Low volatility means prices stay relatively stable. Cryptocurrencies like Bitcoin and Ethereum are famously volatile. One day they’re up 10%, the next they’re down 5%. This might seem chaotic—but volatility isn’t inherently bad. It’s just movement. And movement often means opportunity.

In fact, if you look at the history of innovation, volatility is nothing new. Think back to the early 2000s. Amazon, now one of the most valuable companies in the world, was once considered a risky tech stock. In the dot-com crash of 2000, Amazon’s share price fell by more than 90%. Most people thought it was over. But those who believed in the vision and held on saw their investment grow thousands of percent over the following decades. Today, we take Amazon’s dominance for granted. But back then, it was just a volatile internet company. Sound familiar?

Crypto is in a similar place now. It’s a new technology that’s still being understood by the public and integrated into real-world systems. Volatility reflects uncertainty—but also potential. People are still figuring out what Bitcoin is really worth, how Ethereum can be used in finance, and where this technology fits into our global systems. That process takes time, and price swings are part of that journey.

Now, let’s talk about what causes crypto to be so volatile. First, it’s a relatively new and immature market. Bitcoin has only been around since 2009. Compare that to gold, which has been used for thousands of years, or the stock market, which has had over a century to stabilise. The crypto market is still finding its footing.

Second, the market is still relatively small. As of today, the entire cryptocurrency market is worth a couple of trillion dollars. That sounds huge, but it’s tiny compared to traditional financial markets. For comparison, the global stock market is worth over $100 trillion. Because of this smaller size, even modest buying or selling can cause big price swings.

Third, crypto is heavily influenced by sentiment and news. A tweet from a major figure, a regulatory announcement, or a major hack can all have massive short-term impacts. Over time, as the market matures and becomes more widely adopted, these swings are expected to become less extreme.

Fourth, a lot of trading in crypto is still driven by speculation. People jump in and out of positions quickly, trying to ride short-term waves. While this adds to the excitement, it also adds to the volatility. But as more long-term investors, institutions, and real-world use cases enter the space, these wild swings will likely smooth out.

In fact, we’re already seeing signs of this happening. Major financial institutions like BlackRock, Fidelity, and Goldman Sachs are now offering crypto products. Countries are exploring central bank digital currencies (CBDCs). Banks are integrating blockchain technology to make payments faster and cheaper. These developments bring stability, credibility, and structure to the market.

So, how does crypto volatility compare to other markets? It’s true that crypto is more volatile than most stocks or bonds. But that’s typical for emerging technologies. Even tech stocks like Tesla and Netflix have had massive swings in price. And traditional currencies aren’t immune either. If you live in Australia, you’ve probably seen the Aussie dollar fluctuate significantly over the years. During times of global uncertainty—like the COVID-19 pandemic—major currencies and even commodities saw rapid swings.

It’s also important to recognise that not all volatility is bad. For traders, volatility creates opportunities to buy low and sell high. For long-term investors, it creates chances to build positions when prices dip. For innovators, it shows that a market is alive, evolving, and being tested.

What really matters is understanding your own risk tolerance and time horizon. If you’re investing in crypto for the short term, yes—it’s going to be a bumpy ride. But if you believe in the long-term potential of blockchain and decentralised finance, then short-term price swings are just noise.

In fact, many seasoned investors now apply the same principles they use in traditional investing to crypto: diversify, invest what you can afford to lose, and think long term. At dcx, we always encourage people to educate themselves, start small, and focus on the bigger picture.

Volatility can also be managed. Stablecoins like USDC or USDT are pegged to the US dollar and offer a way to engage with the crypto ecosystem without the wild price swings. These are increasingly used for payments, savings, and even payroll in some countries. As the ecosystem matures, we’ll see more tools to manage risk, more reliable on-ramps for newcomers, and better education to help people navigate the space safely.

Let’s also address the idea that something must be stable to be “serious.” That simply isn’t true. Some of the most transformative technologies in history started out unstable. The early internet was a mess of unreliable dial-up connections and clunky interfaces. Electric cars were once considered impractical. Even mobile phones went through awkward, expensive phases before becoming essential.

Crypto is just following the same arc. And while the market still has growing to do, the direction of travel is clear. Adoption is growing. Infrastructure is improving. Regulation is evolving. And more people are recognising the potential to build a more open, efficient, and accessible financial system.

At dcx, we see volatility as a sign of a market in motion—not something to be feared, but something to understand. We’re building Australia’s safest and most approachable crypto platform because we believe in this technology and its future. We’re here to help Australians navigate that future with confidence—whether you’re just starting out or ready to go deeper.

So, is crypto volatile? Yes. But is it too volatile to be taken seriously? Not at all.

In fact, if history is any guide, the most volatile early-stage technologies often become the most transformative in the long run.