Volatility
Quick Answer
Volatility is the degree of crypto price fluctuation. Payment gateways like SpacePay mitigate it by locking exchange rates at payment time and converting immediately to stablecoins or fiat.
Full Definition
Volatility is the degree of price fluctuation of a cryptocurrency over time. Bitcoin and Ether can experience 5-10% daily swings. For merchants, volatility creates risk — a $100 payment in ETH could be worth $95 or $105 by settlement. Crypto payment gateways mitigate volatility by locking exchange rates at payment time and immediately converting to stablecoins or fiat, ensuring the merchant receives the exact quoted amount.
Related Terms
Validator
A validator is a Proof of Stake node operator that stakes crypto and votes on block validity. More validators means greater decentralisation and more reliable payment settlement.
VASP (Virtual Asset Service Provider)
A VASP is any business offering virtual asset services including exchanges, custodians, and payment processors. Defined by FATF, VASPs must implement KYC, AML, and Travel Rule compliance.