Crypto Volatility: Everything You Need to Know

What Is Volatility?

How Is Crypto Asset Volatility Measured?

  • The Buy Bitcoin Worldwide Bitcoin Volatility Index that measures the asset’s standard deviation values. A rise in standard deviation implies that BTC is more volatile and its values are spread out.
  • The Bitpremier Bitcoin Volatility Index that tracks the price movements of BTC in a percentage context. Traders can use this index to check Bitcoin’s 30 days to 252-day volatility recording.
  • The Bitgur Volatility Index calculates the volatility of the ten largest crypto assets by market capitalization. It uses a 0–100 range with higher numbers signifying high levels of volatility.

Benefits of Crypto Volatility

  1. Every price swing has profit potential, with volatility staving off stagnancy from the crypto-assets trading markets.
  2. The heightened excitement and FOMO caused by asset volatility in crypto assets trading eliminate boredom. 3. It is a thrilling form of trading that captures many traders increasing liquidity
    4. Digital currency price buoyancy gives rise to record-setting bull runs and crashes that give the apt trader a perfect trading opportunity.

Disadvantages of Crypto Volatility

  1. The wild price swings can lead to potential profit or losses
  2. Price instability can also encourage negative trading emotions such as fear, uncertainty, and doubt (FUD) influence trading decisions and increasing negative outcomes.

CryptoAltum’s Safety Trading Tips in Volatile Markets

  1. Be careful, always
  2. Start with a low trading amount
  3. Avoid the urge to jump in at every opportunity. Use trading strategies that ensure that you catch the right wave.
  4. Manage your risk exposure

Conclusion

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CryptoAltum

CryptoAltum

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