Is Trading Volume an important metric ? - page 3.

Hypnosis00

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Quote from: sulendra12 on June 15, 2022, 09:50:37 AM

Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

It's important, but make sure to take a look at supply and demand on certain coins. Sure it has big trading volume, but if the order book is empty on either side of market(supply and demand), then what is the point of trading. This kind of thing once occurs with trading bots or when there is an event going on that certain coin. We can't just rely on one metric on trading.

Supply and demand reflect their price movement. The higher demand, the higher in price but to say there is a high trading volume, it means that there is a fast-moving activity in the market, particularly with that project and this certainly means a lot, and somehow emphasizes that people still making money from this.
I put this one consideration as I've to join trading. A sort of market basis to which project I am going to use upon trading and I say it works, really.

sulendra12

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Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

It's important, but make sure to take a look at supply and demand on certain coins. Sure it has big trading volume, but if the order book is empty on either side of market(supply and demand), then what is the point of trading. This kind of thing once occurs with trading bots or when there is an event going on that certain coin. We can't just rely on one metric on trading.

super bako

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Transaction volume is the most important aspect besides price. Even for many other technical indicators, the volume of transactions can serve as confirmation or rejection of a given hypothesis. Along with circulating supply and market cap, transaction volume is one of the most prominent metrics in crypto assets. on the other hand Coins with frequent price movements will not attract attention if they have high volume. If a coin typically has less volume but traded quite large in the last 24 hours, then that indicates there is support behind the movement in question.?

Coin BTC

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trading volume can be a very important point in choosing a new project to invest in, and you have to be very careful and you have to find out the truth about the trading volume because not everything is genuine sometimes there are fakes in it, the purpose of a new project trade fake and fake trading volume just to attract investors.

Back to the order book.

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Quote from: masterrex on June 15, 2022, 09:22:00 AM

Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

IMO, I think trading volume is one of the important factors in any project because for me it determined the liquidity health of the particular project, and also it serves as the investor's confidence meter in any sense, unless that so-called trading volume is coming from the unreliable crypto exchanges that use the wash trading practices then it's useless.

You got it right mate, Trading volume is usually determines the trading activity of a certain tokens. More volume means many traders has interest on it which is good if you are a trader since you can have a profit for it's price change while you can easily sell or buy due to the good liquidity on orderbook. Most of the exchange has a market maker bot which do the wash trading to generate trading volume but you can easily spot if the volume is fake or not by checking the orderbook liquidity.

Overall. Trading volume is the main components that trader should be look since it says it all when doing a background check on tokens. Many trust the tokens that's why many buy and sell it.

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Quote from: Outhue on June 15, 2022, 12:41:22 AM

Low cap coins are not safe right now, also it's not the best time to be buying coins, if its a must for you then go for large cap altcoins like avalanche and other, low cap gems are something you should buy when the bear market is almost over, why? Because many will coins will die, this is just the beginning.

The problem is that no one is able to tell when the bear market will end so the risk is still there when one chooses a low cap coin, even though it is clearly very good to stick with a large cap coin all the time and one example is as you suggested that even though there are still many others such as BNB and ETH which are already very large in terms of market capitalization.

masterrex

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Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

IMO, I think trading volume is one of the important factors in any project because for me it determined the liquidity of the particular project, and also it serves as the investor's confidence meter in any sense, unless that so-called trading volume is coming from the unreliable crypto exchanges that use the wash trading practices then it's useless.

sunsilk

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Volume is important to me but I'm also doing research and making myself aware of it if it's not genuine.

Well, the first thing that we do is we don't invest that much into those projects that have low volume and liquidity. That only means that there's not that much interest in that project.

But having that said, most projects are starting with low volume but they increase over time when they become popular and the investors has seen its potential.

Silberman

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Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

A high trading volume is something very desirable in any coin or asset in which you are interested in investing, now about the problem that you mention about people selling like crazy, it is true that in that case the volume will go up, however this can be easily avoided by just taking a look at the volume during the previous weeks, if there was no volume during that time and now you are seeing a lot of volume then that is a coin that you need to avoid.

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Of course, trading volume is a very important thing for those of us who want to decide to invest, if the volume is high in buyers then the coin does have a great potential for an increase in the price of the coin, then from the matrix we can make the right decision in a coin, but we also have to see if the trading volume is indeed real if there is an open bott that works behind the scenes, and this is very important of course.

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Quote from: Len Saldua on June 15, 2022, 08:01:01 AM

AAhh... so my thread is here after all. But I can not reply to the other thread I started in the HELP section. Seems fair...

And FYI... I did check my "see replies to your post" prior to posting that , did not find the thread there, it was gone

So, this was another case of "shoot first, ask questions later"? Cheesy

And, next time something is not clear to you, make sure you ask first and check all the information, and don't rush to conclusions and accuse someone for no reason, as in this case. I think an apology to the moderators would be okay now, don't you?

Len Saldua

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AAhh... so my thread is here after all. But I can not reply to the other thread I started in the HELP section. Seems fair...

And FYI... I did check my "see replies to your post" prior to posting that , did not find the thread there, it was gone

Len Saldua

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Actually checked my numbers again.... the coin I was talking about went up several million percent ! I may start a new thread on it soon

Len Saldua

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People, I think you were all wrong.... One of the Alts with zero trading volume a couple of days ago just went up nearly 1 million percent in one day ! This has to be from a large purchase... probably not even that large as the price of the coin was 0.000000... something.
So yes, you take something that low, with zero trading volume, and make a big purchase on it, can make the price go up dramatically as it happened here. Not only that... the price stayed up !
Some of you experts check your numbers again... this is LUNA all over again, except it went from zero to nearly 100 % in one day

Kunnu

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I think trading volume doesn't determine the performance of any altcoins because as we know lot of crypto currency exchanges show fake volume on their platform except some big crypto exchanges like Binance, Okex etc. that's why we must give much priority to those altcoins which are strong enough in terms of utility and fundamental because there is no doubt these kind of altcoins always have good volume.

lobo13hf

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Quote from: Len Saldua on June 14, 2022, 05:08:42 PM

Pardon my ignorance but, what is a strong order book ? You mean the buy / sell orders listed ? That's not a metric you find on CoinGecko

You can't see that metrict on the coingecko because coingecko was only publishing the metrics based on the report from the exchange site through API. If you wanna see the order book and then try to visit the exchange site directly to know that how many order books that available in the excvhange site. You shall make a comparison with it to get whether the trading volume was real or not.

You will not find that on coingecko and you shall use another site to know that. Only coingecko was not enough

Queenboss

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Trading volume is an important factor to consider, though it may be difficult to know the exact trading volume due to the presence of bots trading. It would be wise to consider other factors and not just the trading volume when it comes to making a decision.

Outhue

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Low cap coins are not safe right now, also it's not the best time to be buying coins, if its a must for you then go for large cap altcoins like avalanche and other, low cap gems are something you should buy when the bear market is almost over, why? Because many will coins will die, this is just the beginning.

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Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

For me volume is important, but it is much more important when a coin has the power to release its correction phase, which I know the function of volume is to sell, then when the volume is small, the trade will be difficult to make transactions, if the volume you mean is the selling stage for a coin, but if you mean the volume of the coin, then it's definitely very important

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Quote from: Len Saldua on June 14, 2022, 08:02:37 AM

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

The high volume of a coin is very important, to guarantee the passage of a coin in the market, but unlike the new project you are referring to, sometimes the volume is influenced by other things, but it does not make the coin strong enough to survive in the market, even without the volume the coin cannot be traded or sold in the market, the higher the volume of the coin, the better the coin is executed

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