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Volatility is the degree to which the price or value of a financial item, like a stock or cryptocurrency, changes or fluctuates over time. Low volatility signifies relatively consistent and predictable price swings, whereas high volatility suggests considerable and swift changes in the asset’s price.

Market emotions, news stories, trading volumes, and economic conditions are just a few of the variables that can affect volatility, which can both create opportunities and create risks for investors and traders.