What Is Volatility?
Cryptocurrency Volatility Volatility is defined as the variation or'swing' in the price of an item over time. Volatility is a metric that measures how much the price of a given asset has changed over time. This metric is commonly used as a risk indicator, with volatile investments fluctuating in value more quickly and over broader ranges than less volatile investments. This can result in huge percentages of an asset's worth being lost or gained in a short amount of time; this could be problematic if a sale of an item corresponds to a negative price swing, for example. Volatile assets, on the other hand, offer greater growth potential. Crypto is usually seen as volatile as a newer asset class, with the potential for big upward and downward moves over shorter time periods. Stocks have a wide spectrum of volatility, ranging from the relative stability of large-cap stocks (such as Apple or Berkshire Hathaway) to the frequently unstable "penny stocks." Bonds, on the ...