Volatility

Volatility is a measure of the price fluctuations of an asset, indicating whether its value is increasing or decreasing. Volatility can be both beneficial and detrimental to investors. Although it is considered that investing in a volatile asset is highly risky, it also has high-yielding potential compared to less volatile assets.

Compared to traditional currencies, cryptocurrency is highly volatile, and there are multiple reasons behind this. Investors employ various trading strategies, including dollar cost averaging, relative strength indicators, and mean reversion strategies, to mitigate volatility in the cryptocurrency market.