You are currently viewing What does price volatility mean?

What does price volatility mean?

“It is said that cryptocurrency has high volatility because of the way [the price of a cryptocurrency] increases and decreases at steep rates over time.”

Volatility is a measure of how much the price of a cryptocurrency has changed over a set time period, which helps assess the amount of price movement you can expect to see in a future period.

Assets that have high levels of volatility are often considered to be risky. However, you can also benefit from volatility. Thus, it is important to buy and support crypto projects with eyes wide open; that is, know what amount of movement to expect in a cryptocurrency’s price.


This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.