Plain English
Volatility measures the size of price swings. High volatility = wide daily ranges, frequent 10%+ moves. Low volatility = smaller, more predictable moves. Bitcoin is volatile compared to the S&P 500. Most altcoins are volatile compared to Bitcoin. Memecoins are volatile compared to almost anything.
How it actually works
The standard measure is annualized standard deviation of returns. Bitcoin’s historical volatility runs 50–80% annualized; the S&P 500 sits around 15–20%; major altcoins often above 100%. Implied volatility (from options prices) is forward-looking; realized volatility is what already happened.
What it means for you
Volatility is not the same as risk, but for someone who needs to draw down from a portfolio in a fixed timeline, the two converge. A position you can hold for a decade can handle 70% volatility; a position you need to spend in 18 months cannot. Size positions to the volatility of the asset, not the headline return.
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Educational content only. Not investment, tax, or legal advice.