Crypto Volatility vs Forex

Order-of-magnitude difference

A typical daily range in EUR/USD is well under 1%. Bitcoin routinely moves 3-5% in a day and 10%+ days arrive regularly; smaller coins can double or halve in a week. Crypto is not slightly more volatile than forex — it is a different volatility regime, and habits imported unadjusted from forex can be destructive.

What must change in your process

• Position size: the fixed-fractional formula still rules, but stop distances measured in ATR will be far wider, so sizes must be far smaller for the same account risk. Same risk percent, much smaller position.
• Stops: tight forex-style stops get shredded by normal crypto noise. Stops must respect crypto's ATR, or the strategy is just donating spread.
• Leverage: high leverage plus high volatility is a liquidation machine. Many experienced crypto traders use little or none.
• Weekend risk: crypto trades while you sleep and while banks close. Positions held over weekends face moves with no forex equivalent.