Volatility
The degree to which the price of a crypto asset fluctuates over time.
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Explained Simply
Volatility measures how much and how quickly prices change. Crypto is among the most volatile asset classes — Bitcoin can move 5-10% in a day, and altcoins can swing 20-50%. High volatility means higher potential gains but also higher risk of losses. Dollar-cost averaging and portfolio diversification are common strategies to manage volatility. Stablecoins were specifically designed to minimize volatility.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.