🔶 What is volatility in cryptocurrencies?
💡 Volatility means:
The extent of rapid and sharp price changes of a currency over a certain period of time.
⚡ Example:
If the price of BTC rises from 58000$ to 60000$ within an hour, this is high volatility.
However, if it continues to fluctuate between 59500$ and 60000$ throughout the day, this is low volatility.
🎯 Importance of knowing volatility:
✅ Helps you identify risks before entering
✅ The higher the volatility, the greater the potential profits… and the risks as well
✅ Scalping strategies require high volatility
✅ Long-term calm trading prefers lower volatility
⚠️ Golden advice:
🔎 Monitor the volatility index or candlestick movements before entering a trade.
🚫 Do not enter with high leverage during extreme volatility if you are not an expert.