Volatility
Measure of how rapidly an asset's price changes — crypto is extremely volatile.
Volatility is a statistical measure of price variation over time. Crypto markets are far more volatile than traditional financial markets.
Examples of extreme moves:
•Bitcoin fell 80% from the 2017 peak to the 2018 bottom
•BTC rose 1000%+ during the 2020-2021 bull run
•Luna/UST collapse (2022): from $80 to $0 in 72h
•Many altcoins lose 95%+ in a bear market
Why crypto is so volatile:
•Market is relatively small (vs. global capital)
•24/7 trading without circuit breakers
•Sentiment-driven (Twitter, FUD, hype)
•Leverage and liquidations amplify moves
•Regulatory uncertainty
Advice: only enter with an amount you are prepared to lose entirely.