Volume is the number of active trades of a coin or token. If currently the Bitcoin volume is $28,717,546,569 and the Bitcoin price is $38,533.69 then there are approximately 745,271 Btc being traded.
So the greater the volume of a coin/token, the better the coin will be, also the volume will show the coin/token is healthy or not and is worthy of investment, also easy to buy or easy to sell. If there is a coin/token that only has a low volume, it will be difficult for coin holders to find buyers.
(Although there is a wash trading trick that can increase volume, and it is difficult for novice investors to know, the higher the volume, the more disguised the wash trading trick will be.
The Importance of Volume for Crypto Traders
Crypto traders of course not only pay attention to the price, we also need to pay attention to the volume of a coin/token. Here are a few reasons, why volume is important in crypto trading:
1. Volume will show the level of popularity of the coin/token.
2. Estimate the price of coins/tokens up or down.\
3. Makes it easier for us to spin promising coins for investment.
4. Read the trends and tastes of traders.
So the greater the volume of a coin/token, the better the coin will be, also the volume will show the coin/token is healthy or not and is worthy of investment, also easy to buy or easy to sell. If there is a coin/token that only has a low volume, it will be difficult for coin holders to find buyers.
(Although there is a wash trading trick that can increase volume, and it is difficult for novice investors to know, the higher the volume, the more disguised the wash trading trick will be.
The Importance of Volume for Crypto Traders
Crypto traders of course not only pay attention to the price, we also need to pay attention to the volume of a coin/token. Here are a few reasons, why volume is important in crypto trading:
1. Volume will show the level of popularity of the coin/token.
2. Estimate the price of coins/tokens up or down.\
3. Makes it easier for us to spin promising coins for investment.
4. Read the trends and tastes of traders.
