Sign in

What is Crypto Market Volatility and How to Deal With It? | CoinGabbar

What is Crypto Market Volatility and How to Deal With It? | CoinGabbar

A volatile market can be terrifying, especially for those new to investing and trading. But don’t let that word scare you away! No matter how scary the word sounds, the volatility of this market is an excellent opportunity for you to make money. Investing in volatile markets can be highly lucrative if you know how to play your cards right. 

The trick is not to panic when prices are falling or soaring beyond your expectations – you will need some level-headedness and strong nerves in order to deal with all these fluctuations. Luckily enough, there are a few things you can do to protect yourself from volatility and come out on top regardless of the current state of the market.

Understand the basics of market volatility 

It is essential to understand how the crypto market volatility works to protect yourself from extreme price fluctuations. Volatility is the tendency of an asset’s price to fluctuate over time. In other words, the higher the volatility, the higher the price of the asset will fluctuate. 

Volatility is calculated using the standard deviation, which measures how far the asset deviates from its average price. The higher the deviation, the higher the volatility. On the chart, volatility is represented by the standard deviation line. The volatility of the crypto market is high, but it does not mean that it is a bad thing, and it actually offers excellent opportunities for those who know how to play the game. If you are new to investing and trading, the most important thing to do is to educate yourself about the field and the different aspects that are involved in it.

How to protect yourself from volatility

These are a few steps you can take in order to protect yourself from volatility and minimize the damage if something unexpected happens. - 

Please get to know the market and the assets that are traded in it 

You can only protect yourself from volatility if you know where it comes from. The best way to deal with it is to get to know the market and the traded assets. 

Keep your investments diversified. 

Keeping your investments diversified is a great way to protect yourself from volatility. This means that you should distribute your assets between different types of investments to minimize the damage if one fails. 

Have a proper portfolio 

In order to have a proper portfolio, you must know your risk tolerance, your investment objectives, and your investment timeframe. You also need to consider your financial situation, investment knowledge, and resources to form a proper portfolio.  

Keep an eye on the news and developments

Keeping an eye on the news and developments is crucial if you want to protect yourself from volatility. This is because unexpected events like government regulations can lead to extreme volatility. 


Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more