Cryptocurrency markets are famous for sharp price swings and unpredictability, a phenomenon referred to as cryptocurrency volatility. These swings can result from market sentiment, speculative trading, regulatory news, or sudden liquidity shifts. For everyday traders, volatility presents both risks and opportunities. For cryptocurrency exchanges, managing this volatility is essential to preserve market integrity, protect user funds, and keep systems responsive even when trading volumes surge dramatically. In this in-depth guide, we’ll uncover the tools and strategies exchanges use to handle volatility during periods of high market fluctuations. From liquidity management and risk mitigation controls like circuit breakers to derivative hedging…