Why are prices rising or sinking fast?

You can buy the native coins of Electra Protocol (XEP) on a number of exchanges. The amount of exchanges is still limited, as Electra Protocol was officially launched just in January 2021. Since Electra Protocol is running on its own blockchain, exchanges have to manually connect to this new network, which takes time. As of today, you cannot buy XEP yet on any top 10 exchange like Coinbase, Kraken, or Binance. More exchange listings are planned to happen.

As a result, the liquidity of Electra Protocol is very limited, compared to any global top 20 crypto project, such as Bitcoin or Ethereum. A lack of liquidity means that each buy/sell can make a significant move in the XEP price. Buying a large amount of XEP coins on an exchange for market price can easily move the price up, if you buy coins for a significant US dollar amount (for example 10K USD). That’s why it is suggested to buy XEP coins in batches and not all at once.

What does for the upside, also goes for the downside: Typically there are not many selling orders listed on the exchanges where you can trade XEP. A significant sell order can drive down the XEP price sharply. Typically most users do not worry about this as this is a typical behavior of crypto projects having not much liquidity.

Before you consider buying or selling XEP, make sure that you picked one of the exchanges which have a better liquidity than others.

XEP volatility - XEP price liquidity - Electra Protocol

Volatility is a measure of how much the price of any particular asset has moved up or down over time. Generally, the more volatile an asset is, the riskier it’s considered to be as an investment — and the more potential it has to offer either higher returns or higher losses over shorter periods of time than comparatively less volatile assets.

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