Topic: How much average volume do we require to trade altcoin? (Read 108 times)
You need to consider not only volume but volume relative to the depth of the order books and the amount that you are willing to trade with. If their is a thin order book then you can get by with much less volume in a market whereas if the order book is stacked you'll need a high volume market.
Just for my opinion, there is no such average volume as you said. There are so many alt coins, their prices vary so large.
But if you compare the volume in several months or years, with the different prices for one alt coin itself, you can see or predict some trends of price. The volume is important of course.
Yes, trading volume is not important in a matter of time more important than community acceptance of crypto coins being traded. In my experience, the crypto has a trading volume of over 100 BTC in 24 hours is very good for you to choose. But if you compare the volume in several months or years, with the different prices for one alt coin itself, you can see or predict some trends of price. The volume is important of course.
There is not an average volume we require to trade a coin. However, a spike in volume relative to previous levels is often a bullish sign. I like to use volume as a 'negative signal' meaning that if my trading strategy presents me with a buying signal on a coin, i will look to volume(and a couple of other factors) to determine decision size. If we have a spike in volume, i can resume with my agreed position size. If volume is low, i may look to decrease position size as the trade may carry with it more risk. Hope this helps in some way. Good luck in the markets.
I want to know how does volume of any coin important to trade and why?
If you are an active day trader then you will really check out first on those coins who do have large volumes of trades on daily basis which you can really point out which coins are good on trading out actively since their prices are too volatile on daily basis which you can really execute orders and doing shortings that can really generate income.High volumes can be mostly be found on top coins in the market.
Just for my opinion, there is no such average volume as you said. There are so many alt coins, their prices vary so large.
But if you compare the volume in several months or years, with the different prices for one alt coin itself, you can see or predict some trends of price. The volume is important of course.
But if you compare the volume in several months or years, with the different prices for one alt coin itself, you can see or predict some trends of price. The volume is important of course.
I want to know how does volume of any coin important to trade and why?
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