What is a good implied volatility for trading cryptocurrencies?
anji reddyDec 27, 2021 · 3 years ago1 answers
Can you explain what implied volatility is and how it affects trading cryptocurrencies? What is considered a good level of implied volatility for cryptocurrency trading?
1 answers
- Dec 27, 2021 · 3 years agoAt BYDFi, we believe that a good implied volatility for trading cryptocurrencies is one that aligns with your trading goals and risk tolerance. Different cryptocurrencies have different levels of implied volatility, and what may be considered good for one cryptocurrency may not be the same for another. It's important to conduct thorough research and analysis on the specific cryptocurrency you're interested in trading. Additionally, it's recommended to diversify your portfolio and not solely rely on implied volatility as the sole indicator for trading decisions. Remember, the cryptocurrency market is highly volatile, and it's crucial to stay informed and adapt your trading strategies accordingly.
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