SolStack

Volatility

In Getting Started

Plain English

How much and how quickly the price changes. Crypto is known for high volatility - prices can swing 10-50% in a single day. Traditional stocks might move 1-2% daily. This means bigger potential gains but also bigger potential losses.

Technical

Statistical measure of price dispersion over time, typically expressed as standard deviation or variance of returns. Crypto markets exhibit significantly higher volatility than traditional assets due to 24/7 trading, lower liquidity, regulatory uncertainty, and speculative dynamics. Volatility indices and implied volatility from options markets quantify expected price fluctuations.