#Day94 : Understanding Volatility in Crypto Markets
Volatility is the heartbeat of the crypto market. Unlike traditional assets, cryptocurrencies often experience sharp price swings due to lower liquidity, market sentiment, regulatory news, and speculative behavior. While volatility may seem risky, it also presents opportunities for traders who understand how to navigate it.
Volatility is measured by how much the price of a crypto asset moves in a given time. High volatility means more price fluctuations—perfect for short-term trading, but riskier for holding. Tools like Bollinger Bands, ATR (Average True Range), and historical volatility indicators help traders analyze and prepare for these moves.
The key lies in managing risk, setting stop-losses, and not letting emotions take over during big price swings. Mastering volatility can transform uncertainty into profit potential.
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