Volatility measures how sharply a price moves over a period, in both directions. High volatility is not a synonym for danger and low volatility is not a synonym for safety - it describes the size of the swings, not which way they go.
It matters practically because it sets how long a quoted price stays meaningful. In a violent hour a rate agreed twenty minutes ago no longer reflects the market, which is why settlement speed becomes as important as the number itself when the market is moving.
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/volatility
Trading crypto from Dubai since 2019.
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