![]() When a coin moves, this can tell investors that money will either be gained or lost. In the first quarter of 2020, trading volume was only just above $30 billion.įor those that consider themselves expert traders, trading volume is generally seen as the most significant indicator and factor to consider since it reflects the coin’s usual pace of movement and alerts them to any unusual deviations. ![]() $120 billion of this was owed to retail investing and another $215 in institutional trading. Coinbase, one of the world’s most prominent exchange platforms, reported roughly $335 billion in trading activity in just the first quarter of this year. With that said, before deciding to invest in crypto, it’s crucial to consider a cryptocurrency’s overall trading volume, not just the volume shown on a specific exchange.Īccording to experts at CNBC, individuals and institutional investors alike poured money into Bitcoin and other digital assets in 2021 so far. In most cases, you can always find the trading volume of a cryptocurrency on exchange platforms, which is not necessarily representative of the cryptocurrency’s total trading volume throughout the market. In other words, a cryptocurrency’s 24-hour trading volume is the amount of money that has been purchased and traded in a single day. So what exactly is crypto trading volume? As mentioned above, trading volume can be defined as the number of coins that have changed hands within a certain period of time. We’ll explain how trading volume works, what it means, and how it affects the price of assets and cryptocurrencies in this Crypto Academy article. If you want to learn more about trading volume and how it affects cryptocurrencies and the investment strategies of analysts or traders, you’ve come to the right place. ![]() In other words, a cryptocurrency’s 24-hour trading volume measures how much value has been purchased and/or sold throughout an entire day. To sum it up, the trading volume of a cryptocurrency is essentially the total amount of coins that have changed hands in a particular period of time, and in most cases 24 hours. Trading volume is one of the most useful tools for determining how virtual currency prices fluctuate. You may have heard of the term trading volume before, and that’s likely why you’re here. For instance, Bollinger Bands, RSI, and moving averages are some of the few that one may put into use in these types of situations. Traders and analysts always have their eyes on any slight indication that might help them understand future prices and ultimately, whether to buy or sell an asset or cryptocurrency.
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