Questions ยป What is volume in crypto trading?

What is volume in crypto trading?

In crypto trading, volume refers to the total number of units of a particular cryptocurrency that have been traded over a given period of time, usually measured in 24-hour periods. Volume is an important metric because it can give traders an idea of the level of market activity for a particular cryptocurrency.

For example, if the daily volume for Bitcoin is 1 million BTC, it means that 1 million units of Bitcoin were traded during the 24-hour period. Higher trading volumes can indicate greater liquidity and market activity, which can make it easier for traders to buy and sell the cryptocurrency without affecting its price significantly.

Volume is often displayed on trading platforms in the form of a chart or graph that shows the amount of trading activity over time. Volume can also be used in conjunction with other indicators, such as price movements or technical analysis, to help traders make informed decisions about when to buy or sell a particular cryptocurrency.