Historical Volatility: What It Means and How Traders Use It

When you hear historical volatility, a measure of how much an asset’s price has swung over a past period. It’s not a guess—it’s math based on real price changes, usually calculated daily over 14, 30, or 90 days. Also known as past volatility, it tells you how wild an asset has been, not how wild it might be next. This isn’t just for academics. Traders use it to decide whether to buy, hold, or run. If a coin like BRISE or MANA has had wild swings in the last month, historical volatility flags it as risky—even if the price looks cheap now.

It’s not the same as implied volatility, a forecast based on options pricing and market expectations. Implied volatility is about what people think will happen. Historical volatility is about what already happened. You can’t predict the future with it, but you can see if an asset has a habit of exploding or creeping. For example, tokens like SENSI or IMG show up in our posts because they spike 50% in a day and drop 30% the next—those are high historical volatility assets. Meanwhile, Bitcoin’s historical volatility has dropped over the last two years, making it less of a rollercoaster and more of a steady climb for some investors.

Why does this matter for you? Because if you’re trading DeFi tokens, checking historical volatility helps you avoid getting wiped out by a surprise crash. It tells you if a low price is a bargain or a trap. A token with low historical volatility that suddenly spikes? That’s a red flag. A token with high historical volatility that’s been calm for weeks? That could mean a big move is coming. Tools like those used on AscendEX or Xena Exchange rely on this data to set stop-losses and leverage levels. Even in crypto markets with no regulation, like Russia’s cross-border use cases, traders still look at historical volatility to judge risk before moving funds.

Our collection includes posts on tokens with wild price swings—SENSI, IMG, PRIVIX, and more—because they’re perfect examples of high historical volatility in action. You’ll also find guides on exchanges that track these patterns, like AscendEX and Xena, and deep dives into how volatility affects DeFi loans and collateral requirements. If you’ve ever wondered why some coins crash without warning, or why experts say "don’t chase pumps," historical volatility is the answer. Below, you’ll see real cases where this metric saved traders—or cost them everything.