Volatility is the measure of fluctuation in an asset’s price over some period of time.
If you’ve ever watched a cryptocurrency price chart, you’ll notice the crypto prices shift dramatically, up and down, sometimes in a matter of minutes.
This is an example of the volatile nature of cryptocurrency prices, which are more volatile compared to other assets like stocks or bonds.
High volatility is when you see rapid and quick price swings, often seeing new highs and new lows being established. Trying to predict where price goes next is virtually impossible.
Low volatility in the cryptocurrency markets is generally seen as stable prices that don’t bounce up and down in a wild manner.
Volatility can be seen as an opportunity for crypto traders as it provides more possible trade entries.