Volatility is what makes crypto exciting — and terrifying.
It creates opportunity, but also risk. The key is learning how to ride it, not fear it.
What is Volatility?
Volatility measures how much and how fast a price moves over time.
In crypto, volatility is usually high — and that’s exactly what traders love.
Example:
If BTC jumps from $106,151 to $109,000 in 3 hours, that’s volatility.
Same if it drops back to $104,000 in a day.
Why It Matters:
More volatility = more trading opportunitiesBut also = more risk if you’re on the wrong side
High Volatility = Big Moves
Can help you hit targets quicklyBut also means your stop-loss can get triggered easilyNot ideal for beginners without a plan
Low Volatility = Slow Market
Safer for long-term investorsHarder to scalp or day trade profitablyOften leads to a breakout later
How I Use It:
I increase position size only when volatility is lowI reduce leverage during extreme spikesI trade less during sideways chop — that’s fake volatility
Pro Tip:
Use the Volatility Indicator on Binance or look at Bollinger Bands to see if a coin is expanding or contracting.
Don’t just chase volatile coins.
Understand the cycle — volatility is a tool, not a threat.
Follow
@mythoughts — no hype, just thoughts.
#TradingType101 #Volatility101