Educational Post:
What is trading volume?
Crypto trading volume measures how many times a coin changes hands over a given time frame.
Volume is an extremely important indicator for traders to determine the future profitability of cryptocurrencies. Volume can show the direction and movement of the cryptocurrency as well as a prediction of future price and its demand.
A greater volume of cryptocurrency transactions leads to fair cryptocurrency prices and removes the chance of distorted pricing.
A low cryptocurrency exchange volume signals inefficient or low trades, as the asking prices of sellers fail to meet the bids of potential buyers.
Higher volume tends to translate to higher price stability and less volatility. Of course, times of extreme fear or greed might bring surges in volume and large price movements. But, in general, coins or assets that consistently have higher volume tend to have less volatility.
Like share and follow @multipreneurs
