Volatility
Volatility measures how much and how fast an asset’s price moves; crypto is among the most volatile asset classes.
In depth
Double-digit percentage moves in a day are common, driven by thin liquidity, leverage, news and sentiment. Volatility creates opportunity for traders and danger for anyone using leverage or who cannot tolerate drawdowns. Stablecoins exist specifically to escape it.
Why it matters
Position sizing and leverage decisions should start from a realistic view of volatility.