What is volatility?
How much and how quickly an asset's price moves, in either direction.
Volatility describes the size of typical price swings over a period. Crypto assets are substantially more volatile than equities or currencies, and smaller assets are more volatile than large ones.
Why it matters: volatility is symmetrical, which people forget when it is working in their favour. It is also why position sizing matters more here than in slower markets: a move that would be a notable day in equities is an ordinary hour in crypto. Higher volatility means the same position size carries far more risk.
Related terms
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- Seed phraseA list of ordinary words, usually twelve or twenty-four, that encodes every private key…
- Hash rateThe total computing power miners are pointing at a proof-of-work network, usually quoted in…
- GasThe fee paid to have a transaction processed on Ethereum and similar networks, priced…
Crypto assets are volatile and high-risk. Prices shown are indicative and may be delayed. Always do your own research. Coinpric does not provide financial advice.