What is Trading Volume?
Let's find out Trading Volume meaning, definition in crypto, what is Trading Volume, and all other detailed facts.
Trading volume (also known as trade volume) is a metric that reflects the total value of cryptocurrency traded in the last 24 hours. Since trading volume can help indicate shifts in cryptocurrency trends, it is really important. It is often used by investors to predict downward or upward price movements.
For instance, a jump in trading volume for a coin with a low volume could indicate a shift in a trend, for example, increased institutional interest. Likewise, a drop in trading volume for a coin with a high volume could indicate that the demand for the cryptocurrency is diminishing.
In addition, the trading volume can be used to determine the strength or weakness of a move, and the higher the volume, the higher the momentum. The notion is that a trader should be more motivated to join greater swings while avoiding the weaker ones.
If there were 700 trades made in a day, this means that the trading volume of the day is 700. Though if a large number of traders opened positions in the asset on the same day and closed them out at the end of the session, the trading volume might be higher than the total number of positions open at the beginning (or end) of that day's trading.
Note that Bitcoin usually has the highest trading volume.