Topic: Does Trading Volume really matter ? - page 3. (Read 938 times)
I think, Trading volume is important for crypto trading. People always interested in large volume crypto currency. I also think,If any coin volume is zero they you can trader this coin comfortable? And also need good project to success in trading.
Just imagine OP if you are trading in a coin that has zero trade volume, you will certainly be thinking who buys my coins when I sell them? Nothing, it means it is very important in trading and such activities will encourage traders to join the party. In fact, this is one way to recognize that a particular project is worth to risk and we know that having this will give us profit.
But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.
But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.
Maybe I'll focus on the fake volume you're saying. I've seen very many exchanges in the past that use this method to get user ratings. Usually fake volumes are used by several small exchanges so that the buy and sell orders are arranged very neatly.
The way I interpret it right now ( correct me if I'm wrong ) is that trading volume is high when an ecosystem is very active and adoption is growing relative to other projects, so it's a good indicator to buy into that project.
Yes, it does really matter and you are right actually. High trading volume means the project is active. Whenever I judge a project if it's good or not, this is also one of the early things that I am looking at. Just make sure that the data's that you are seeing are verified to be legit because it's very easy for each project to write high numbers but the truth is that they are only faking it to attract more investors. Vulcan forged is also a famous project, which is why its trading volume is high but for axie, the game is only popular before but not anymore now since it experienced some problems which until now haven't solved yet. This is why their volume is dropping hard.
When you are given a trading volume the only indicate how long that project has traded within that estimated timeframe. Usually it is based on 24Hrs. Trading volume matters but it doesn't really give in-depth of all you need to know because it works based on a stipulated time. Instead total supply and market capitalisation can give more hint than trading volume. Also pay attention circulating supply.
A bad project might have more trading volume than good project because it had more trading activities circulating around the coin or token within the 24hrs time frame compared to a good project. If you chose to analyse based on trading volume do well to confirm your charts as well
A bad project might have more trading volume than good project because it had more trading activities circulating around the coin or token within the 24hrs time frame compared to a good project. If you chose to analyse based on trading volume do well to confirm your charts as well
oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
Although there can be that way of saying that if a project is good or not through its volume, that is not enough.for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
But if you're going through dexes, it's really one way of looking for to say what you want to deal because you'll never know if it's going to be as good as what you're thinking.
It's a good standard to be followed.
Trading volume indicates how the interest of people in the coin/token. So, it is surely very necessary and means a lot.
As a trader, I will avoid buying coins with low trading volume. It is too risky since the price seems to tend to decrease gradually with lesser traders.
If you choose a coin with a high volume and an active ecosystem, it is the right decision. But make sure that they have quality developers/teams, it is more important because it has the biggest role to guarantee the project exists for a long time or not. You can see the quality of the developers from the improvement of the project constantly.
As a trader, I will avoid buying coins with low trading volume. It is too risky since the price seems to tend to decrease gradually with lesser traders.
If you choose a coin with a high volume and an active ecosystem, it is the right decision. But make sure that they have quality developers/teams, it is more important because it has the biggest role to guarantee the project exists for a long time or not. You can see the quality of the developers from the improvement of the project constantly.
Just imagine OP if you are trading in a coin that has zero trade volume, you will certainly be thinking who buys my coins when I sell them? Nothing, it means it is very important in trading and such activities will encourage traders to join the party. In fact, this is one way to recognize that a particular project is worth to risk and we know that having this will give us profit.
But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.
But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.
The trading volume of any project depends a lot on that project because it can be seen that when the trading volume is up, many new investors join and they will continue to invest in that project so that more volume is up and the price of the token increases a lot. In this case, in many cases Project token price goes up so Trading Volume plays an important role in a project.
Volume is one of the indicator and it can actually confirm the trend so if there’s a good volume you can expect many investors to come in, but that is not a guarantee though since volume can also tell if it’s already overbought or oversold. If you want to have a good signal, use volume along with the other indicators, many traders forget to look at the volume and that’s why their analysis is not working, volume really matters to me. It is true that trading volume is one of the important factors that we must look at to determine which projects are good for trading. As you said if
the project has a high trading volume, it means that the project is very attractive to traders, and it will make it easier for us to trade. Because projects
with low trading volumes are usually difficult to sell, because the demand is small. But we also have to be careful because trading volume can also
be manipulated, especially on small and unpopular exchanges, usually a lot of manipulation occurs. They will use bots as if many traders are interested
in these projects even though it is only manipulation. That's why we also have other considerations before deciding which projects are suitable for trading.
Trading volume is indeed very important, but of course trading volume is not the only thing we have to look at, there are many things we have to
look at and consider.
The trading volume of any project depends a lot on that project because it can be seen that when the trading volume is up, many new investors join and they will continue to invest in that project so that more volume is up and the price of the token increases a lot. In this case, in many cases Project token price goes up so Trading Volume plays an important role in a project.
Volume is one of the indicator and it can actually confirm the trend so if there’s a good volume you can expect many investors to come in, but that is not a guarantee though since volume can also tell if it’s already overbought or oversold. If you want to have a good signal, use volume along with the other indicators, many traders forget to look at the volume and that’s why their analysis is not working, volume really matters to me. 
oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
but keep in mind that the trading volume can be manipulated by the whale or the owner of the coin and if we are not careful to analyze the coin we want to buy, we will surely fall into that trap and lose even more money.for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
but if we want to trade on some of the top coins that have a good reputation and the trading volume can be analyzed logically and makes sense that would be better. because the manipulation of trading volume can be seen when analyzing through several platforms such as coinmarketcap and coinecko. there we can analyze and compare how true the trading volume is and we can also see the daily trading volume to analyze it.
actually if we are observant in analyzing it, we will definitely see the original trading volume with fake volume
Almost all exchanges manipulate trading and the volume but some exchanges have the pedigree of a more reliable volume of trade due to high daily number of users/visits, deposit and withdrawal. Trading order can also indicate how genuine trade is on the exchange, if most of order set at the present prices are filled immediately without bot. The size of order on the exchange correlates with volume. top exchanges like binance, kucoin, coinbase got such pedigree and is the reason almost all projects want to list there. If a project start producing low trade volume for so long, the exchanges delist them.
I would guess that you could see the volume while you are trading yourself as well. When you are trading if the price actually moves decently that means there are some traders, if it doesn't move, but there is volume, that means they are trading in between the lines.I have been part of an exchange back in the day working to make one of the tokens volume high, what we did was put orders on lower than the buyer, and one higher than the seller and trade with each other, we would remove it right afterwards so we wouldn't be able to trade with others and lose money neither. We would only lose the fee, and that was given back anyway so it wasn't a bad deal.
oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.
The trading volume of any project depends a lot on that project because it can be seen that when the trading volume is up, many new investors join and they will continue to invest in that project so that more volume is up and the price of the token increases a lot. In this case, in many cases Project token price goes up so Trading Volume plays an important role in a project.
It's a piece of information, that's why it is also important.
But don't use it as the basis of how good a coin is. Perhaps, they are just starting out or for whatever reason, they are not being traded yet to a large extent.
I'd go directly to one reputable exchange where a certain coin is available to trade.
I remember before when I put in a sell order for one reward coin from an ICO. It was sold faster than I expected. That made me realize there will still be buyers for coins that are expected to be pumped from the purchasers' own point of view.
But don't use it as the basis of how good a coin is. Perhaps, they are just starting out or for whatever reason, they are not being traded yet to a large extent.
I'd go directly to one reputable exchange where a certain coin is available to trade.
I remember before when I put in a sell order for one reward coin from an ICO. It was sold faster than I expected. That made me realize there will still be buyers for coins that are expected to be pumped from the purchasers' own point of view.
Of course trading volume is a very important factor for a project There are various scam projects that fake trading volume to lure people into their project They show people they have enough trading volume.But you notice all these things. Trade on the most popular projects. Don't waste your money unnecessarily trading in some fake projects.
I believe that trading volume is more focused on trading. It is measured by the counts of tokens/coins that are being traded for a given time, like 24-hour trading volume. That's why OP sees some coins that have low or high trading volume compared to other altcoins.There are some projects that got high trading volume but they are not legit, so I will not use trading volume as the main indicator if the project is not legit because it can easily manipulated.
Of course trading volume is a very important factor for a project There are various scam projects that fake trading volume to lure people into their project They show people they have enough trading volume.But you notice all these things. Trade on the most popular projects. Don't waste your money unnecessarily trading in some fake projects.
Of course the trading volume is very important because the more volume there is,
then we can know that the whales are accumulating a token or coin, even that can also be a sign that the pump will take place.
trading volume can also be analyzed technically, if you can read it then you will really be successful in your trading.
then we can know that the whales are accumulating a token or coin, even that can also be a sign that the pump will take place.
trading volume can also be analyzed technically, if you can read it then you will really be successful in your trading.
Trading volume is very important especially if you're a day trader. A high trading volume indicates that there are many traders that are buying and selling that particular crypto thus a lot of movements are happening around that market. Meanwhile, a low volume doesn't necessarily mean that it is not good to trade. You should also consider the market condition at that time because during bear market, even cryptocurrencies like BTC, ETH, or BNB have low volumes compared when it's bull cycle. People lose interest during those times because cryptos are dumping hard from their ATH.
It also allows you to back out a lot easier as well. Something that has low volume means with enough volume someone could destroy it anytime they want, but with something that is a lot lower that means we are not going to end up seeing something that would work out well for these people neither. I mean it's clear that we are going to have hard time with this situation because people who trade high volume stuff would not have the volatility to make a lot of profit neither.So, you have to consider what you are going to do, will you end up with something that is low volatility, or will you do low volume, which one looks like a better deal for you?
Volume can tell you a lot in the market if not manipulated, it shows what is actually happening in the price of an asset, with volume you will be able to determine the money inflow and outflow in the price of an asset, that is, how many people are buying and selling at any given time.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market, therefore general Volume really matters a lot when it comes to the price or performance of an asset.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market, therefore general Volume really matters a lot when it comes to the price or performance of an asset.
this is also an indicator if the project is big or small. but investigate also because some projects practice wash trading in order for them to look good in the trading volume. however, they won't sustain such strategy. but as a trader, you will be more confident getting involved with projects having high trading volumes. but for small ones, usually, they move slow also. so it is not advisable to trade this kind of coin as it would take your time waiting to complete your order.
Volume can tell you a lot in the market if not manipulated, it shows what is actually happening in the price of an asset, with volume you will be able to determine the money inflow and outflow in the price of an asset, that is, how many people are buying and selling at any given time.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market. Therefore generally, Volume is a good indicator and really matters a lot when it comes to the price or performance of an asset.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market. Therefore generally, Volume is a good indicator and really matters a lot when it comes to the price or performance of an asset.
Jump to: