3% Range
The 3% range is an important concept in cryptocurrency trading. It refers to the maximum range of price fluctuations that a given currency can experience over time without being considered unstable or volatile. The 3% range was developed by traders and market analysts as a way to measure the risk associated with investing in any particular digital asset, because it gives investors an indication of whether their investment will remain within certain limits and be relatively stable, or if there is potential for large swings and high volatility which could lead to significant losses.
This principle applies not only when evaluating new cryptocurrencies but also established ones such as Bitcoin, Ethereum, Ripple etc., since all currencies are subject to varying levels of volatility depending on economic conditions and other external factors. In order to accurately determine the 3% range of any given cryptocurrency it is necessary to look at its historical performance over different periods such as weeks, months or even years; this allows us get an understanding how much variation we should expect from one day’s prices compared with another’s. Cryptocurrency markets typically move in cycles so analyzing previous data points can help identify trends which may be indicative of future movements – something that experienced traders pay close attention too!
By keeping track of these ranges (which are usually displayed clearly on most exchanges) investors have a better chance at making more informed decisions about where they put their money – thus reducing overall risk exposure while increasing their chances for success!
