If you’ve ever looked at a crypto chart and thought,
“Why is this moving so much?” — this lesson is for you.
By now in the challenge, you’ve already seen:
Big green candles
Sudden drops
Fast price swings
That movement has a name.
Welcome to Day 20 of the 90-Day Crypto Learning Challenge 🚀
Today, we’re talking about volatility — one of the most important ideas in crypto.
What Is Volatility? (Simple Meaning)
Volatility means how fast and how much price moves.
High volatility → big, fast price changes
Low volatility → slow, small price changes
📌 Crypto is known for high volatility.
Why Crypto Is So Volatile
Crypto doesn’t move fast for no reason.
Here are the main causes:
1. Liquidity
Some coins have:
Fewer buyers and sellers
Smaller trading volume
📌 Less liquidity = price moves more easily.
2. Speculation
Many people trade crypto based on:
News
Hype
Expectations
📌 Speculation increases sudden moves — both up and down.
3. 24/7 Market
Crypto never sleeps.
No market close
No weekends off
Price reacts instantly to events
📌 This makes moves faster compared to traditional markets.
Why Volatility Is Not Always Bad
Volatility has two sides.
Opportunity
Price moves create chances
Trends form
Good entries appear
Risk
Losses can happen quickly
Emotions get tested
Bad timing gets punished
📌 That’s why risk management (Day 19) is so important.
How Beginners Should Think About Volatility
Don’t fear it
Don’t chase it
Learn to manage it
Higher timeframes, smaller position sizes, and clear stop-losses help control volatility.
The Big Takeaway
Volatility is both opportunity and risk.
It rewards preparation — and punishes emotion.
Let’s Keep Going
If crypto ever felt “too fast,” now you know why.
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👉 Comment “DAY 20” if you’re still learning with me 🚀