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How can VIX S be used as an indicator for cryptocurrency volatility?

avatarHANIS KHAIRINA MUHAMMAD RUSDANDec 17, 2021 · 3 years ago1 answers

Can VIX S be used as a reliable indicator to measure the volatility of cryptocurrencies? How does it work and what are its limitations?

How can VIX S be used as an indicator for cryptocurrency volatility?

1 answers

  • avatarDec 17, 2021 · 3 years ago
    Using VIX S as an indicator for cryptocurrency volatility can be insightful. While VIX S is primarily designed for traditional stocks, its underlying principles can still be applied to cryptocurrencies. By tracking VIX S, traders and investors can gain a sense of market sentiment and potential price movements. However, it's important to remember that VIX S is not a perfect indicator and should be used in conjunction with other technical and fundamental analysis tools. Additionally, different cryptocurrencies may have unique volatility patterns, so it's essential to consider their specific characteristics when interpreting VIX S readings.