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 opportunities

  • But also = more risk if you’re on the wrong side

High Volatility = Big Moves

  • Can help you hit targets quickly

  • But also means your stop-loss can get triggered easily

  • Not ideal for beginners without a plan

Low Volatility = Slow Market

  • Safer for long-term investors

  • Harder to scalp or day trade profitably

  • Often leads to a breakout later

How I Use It:

  1. I increase position size only when volatility is low

  2. I reduce leverage during extreme spikes

  3. I 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