What it means
How much and how fast a price goes up and down.
Bitcoin and ETH are volatile: their price can move 10% in a day. Stablecoins are designed not to be.
How it works
High volatility is also what makes crypto collateral risky to lend against.
Related terms
| Term | What it means |
|---|---|
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| Bitcoin | The first cryptocurrency, launched in 2009, with a fixed supply of 21 million coins and its own blockchain. |
| Liquidation | When a lending protocol sells a borrower's collateral because its value has fallen too close to the loan. |
This glossary explains terms in general. It isn't investment, tax or legal advice.