[Translation to English] Will the predictive market help investors ride the volatile price swings of cryptocurrencies?

There was an interesting article about prediction markets. Without delay, let's read the translated article in English.

Will Prediction Markets Help Investors Ride the Volatility of Crypto Assets?

This article was written by Fox Holt, Vice President of Delphy's Business Development department.

When deciding which assets to invest in, the most important considerations are diversification of the target assets and the volatility of their price movements. In other words, the pace at which prices swing up and down, and the extent of the fluctuations. Fiat currencies tend to have relatively mild movements, while commodities and stocks often experience more dramatic price swings.

Perhaps the most volatile asset is cryptocurrencies, which have recently become part of many financial product portfolios.

Many factors contribute to this. Because coin circulation is relatively limited, cryptocurrency prices are often heavily influenced by whales—large investors who hold substantial positions in a given market from the outset.

News also has a significant impact on charts. Rumors that China banned ICOs or that Korea would impose taxes on cryptocurrency exchanges caused the prices of several cryptocurrencies to plummet. The $70 million worth of Bitcoin stolen at NiceHash and vulnerabilities in OpenSSL have produced similar results. By contrast, news that celebrities such as DJ Khaled and Floyd Mayweather support certain coins has driven up several coin prices substantially.

All of these factors accumulate, creating an extraordinarily volatile market. There are both risks and opportunities there. If you can buy undervalued currencies at advantageous entry points, you can achieve enormous returns. However, finding the next Bitcoin is a difficult task.