Over the past years, crypto currency has become very famous as a place to invest money into. Crypto currency can go up and down at any time, and is completely fueled by an economy of other people investing. Crypto currency has a company, therefore it is purely based off of investments. In my opinion I think that this is another reason as to why investing in crypto currency is extremely volatile because people can sell at any time they want and it can cause a chain reaction, however, this is the same case as Markets.

When someone buys a lot of crypto currency, it can affect the price of the coin that they are investing in. Big investors, such as Elon Musk, have a big impact on the crypto currency market. Elon Musk has a lot of Bitcoin and Eth, and may also have a lot of other crypto currency that we do not know of. But if he were to sell all of his crypto currency, he would severely impact the crypto currency economy.

This follows up on my statement as to why Crypto currency is extremely volatile. Crypto can go up or down at any time without any specific reasons. It could simply go down by people just selling their crypto currency. With stocks, a business can make an announcement, which can make their investments shoot up, or go down. Crypto currency is very different as there is no real backing and it is all just investments. The investors are the backing of crypto currency.