Orca Crypto
Trading term

Volatility

How much and how fast a price moves, in both directions.

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Updated 2026-08-303 min readDefinition
Definition

How much and how fast a price moves, in both directions.

Volatility is not the same as risk, but in crypto they usually travel together. Assets here routinely move ten percent in a day and fifty percent in a month.

High volatility means position sizing matters far more than entry timing. The same trade at a quarter of the size survives moves that would otherwise force you out.

In practice

If a 30 percent drop overnight would make you sell in a panic, your position is too large regardless of how good the idea is.

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