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Volume

Volume is the total amount of crypto traded over a given period. It shows how much is being bought and sold.

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What is volume?

Trading volume is often measured in euros or dollars. For example, it could be the total value of a coin traded in one day.

High volume means there is a lot of trading activity. Low volume means less trading is taking place. On price charts, volume is often shown as bars below the price.

A simple example of volume

Suppose people buy and sell a lot of Bitcoin in one day. The total value of all those buys and sells is the trading volume for Bitcoin that day.

Is that amount higher than on previous days? Then trading activity has increased. Volume doesn’t automatically tell you whether the price will go up or down.

Why is volume important in crypto?

Volume helps show how much interest and activity there is around a coin. News about a sharp price increase or decrease often mentions whether volume changed as well.

A sudden increase in volume may point to a price move, up or down. It’s not a prediction: the price can still move differently afterward.

A coin with high trading volume is generally easier to buy or sell without large price differences. With smaller coins, large transactions can affect the price more quickly.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.