Understanding Crypto Volatility
Crypto prices move fast. This volatility is what attracts traders but scares institutions.
Measuring Risk
Standard Deviation and Volatility Indices measure how much a price deviates from its average.
- High Volatility: High risk, high potential reward.
- Low Volatility: Stable but boring returns (Stablecoins).
Using it to your Advantage
Traders use volatility to price options and set stop losses. If volatility is high, you need wider stops.
Check the current market pulse with the Volatility Calculator.