What is Volatility: Risks and Opportunities
Market volatility is a measure of how asset prices change over time. It reflects the degree of market instability, with stock, cryptocurrency, or commodity prices fluctuating sharply over a short period.
Risks
High volatility can cause uncertainty and panic selling. This is especially dangerous for those who are not prepared to react quickly to changes. Sharp price fluctuations can lead to significant losses if capital protection measures are not taken.
Opportunities
For experienced investors, volatility is a chance to make a profit. Rapid price movements can open windows to buy assets at a discount or sell at a peak. The main thing is to be able to analyze the situation and manage risks correctly so as not to lose more than you earn.
Remember that volatility is not only a risk, but also an opportunity for those who are ready to follow proven strategies and control their emotions.