LESSON 4 · Invest Without Fear
Why the Wild Swings
Crypto volatility is not a bug — it is a feature of how these markets work. Stocks have earnings, dividends, and decades of data to anchor their value. Most crypto assets have none of that. Their price is driven almost entirely by supply, demand, and sentiment. When Elon Musk tweets about Dogecoin, its price can swing 20% in hours. When a major economy signals a crypto crackdown, tens of billions in value can evaporate within days. Without fundamental anchors, prices become a pure reflection of collective emotion — and crowds are terrible at staying calm.