What is Trade Volume?

Trade volume is the amount of money traded in a market during a certain time period. Trade volume can be measured in units of currency, coins, or tokens. Trade volume is one of the important indicators for analyzing crypto market activity and sentiment.

Trade Volume Indicates Liquidity and Market Interest

Trade volume shows how easily and quickly you can buy or sell crypto assets on the market. The higher the trade volume, the more liquid the market, and the lower the transaction costs. 

High liquidity also means that crypto asset prices are more stable and not easily influenced by fluctuations in supply and demand.

Trade volume also shows how much interest the market has in a particular crypto asset. The higher the trade volume, the more people are involved in trading that crypto asset, and the higher its popularity and reputation. 

Trade volume can be one of the factors that influences the ranking and market capitalization of crypto assets.

How to See and Understand Trade Volume

You can see the trade volume of crypto assets on various platforms and websites that provide crypto market data and charts. One of them is CoinMarketCap, which is one of the leading and most trusted sources of information in the crypto world.

CoinMarketCap displays crypto asset trade volumes in the last 24 hours, last 7 days, and last 30 days. You can see trade volume in USD or BTC units, and also as a percentage of the total crypto market volume. 

You can also see the trade volume of crypto assets on various available exchanges and trading pairs.

Trade volume can be used to analyze crypto market trends and patterns. For example, you can see whether the trade volume of a crypto asset increases or decreases with price changes. 

You can also see whether the trade volume of crypto assets is directly proportional to or opposite to the trade volume of the crypto market as a whole.

Conclusion

Trade volume is one of the important indicators for analyzing the crypto market. Trade volume shows how liquid, popular and stable a crypto asset is in the market. You can see and understand the trade volume of crypto assets on various platforms and websites, such as CoinMarketCap.

By trading volume, you can gain useful insights and information to make smart and profitable trading decisions.

Read also:

What's that Arbitrage Trading?

What Is Cross-Border Trading?

What Is Coin-Margined Trading?

Understanding Fakeouts in Trading

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.