CoinucationVolatility
Volatility measures how much and how quickly an asset's price moves; crypto is far more volatile than stocks or major currencies.
Volatility is the degree of variation in an asset's price over time. A highly volatile asset makes large moves up and down, while a low-volatility asset like a stablecoin barely changes. Volatility is usually measured as the standard deviation of returns over a period and quoted as an annualized percentage.
Crypto is notably volatile. Bitcoin has historically shown annualized volatility well above that of the S&P 500, and smaller altcoins are far more volatile than Bitcoin. Daily moves of 5 to 10 percent in Bitcoin and 20 to 50 percent in small tokens are not unusual. Bitcoin's volatility has declined gradually as the market has matured, but it remains high by traditional standards.
Volatility cuts both ways. It is what makes large gains possible over short periods, and it is also what wipes out leveraged traders. Anyone holding crypto should expect drawdowns of 50 percent or more at some point and size their position so that such a drop is survivable.