Trading volume has a huge impact on the success of the project. It simply means that it is active on the market and lots of investors trust the whole project. It could increase the volatility of a coin which will also be profitable for most traders. Nowadays, fake volume is also existing for some developers to hype the project so we must be skeptical and careful. It's still important to do research first.
Most top altcoins on CMC boast about their daily trading volume to show and convince investors that their coins were stable. Huge trading volume is a desirable trait that most alts want to attain which leads to fake trading volume as you mentioned. So yes, trading volume is an important metric. 
Topic: Is Trading Volume an important metric ? (Read 595 times)
Of course, Trading Volume is an important metric in the crypto space because it has such a huge impact on price from both an absolute and relative perspective.
If we look from a trader perspective toward the crypto Market so the first thing that we have to know about volume.
Trading Volume:
Trading volume is the number of coins that have exchanged hands during a defined period
of time, usually 24 hours
Trading Volume of A Coin:
The trading volume of a coin is how much value of a coin has been bought and sold over 24 hrs.
Importance of Trading Volume:
For example, if a trader wants to take a trade on a coin so first, they tried to confirm trends and patterns of the coin with technical analysis because high or low trading volume attracts different types of traders and investors. Many traders and investors prefer a higher average daily trading volume compared to low trading volume, because with high volume it is easier to get into and out of positions. So therefore Trading Volume is an important metric in the crypto space
ref: https://www.investopedia.com/terms/a/averagedailytradingvolume.asp#:~:text=Average%20daily%20trading%20volume%20is,get%20into%20and%20out%20positions.
ref: https://www.bitrates.com/guides/terminology/trading-volume
Disclaimer: The post should not be considered financial advice. I do not give advice on financial products.
If we look from a trader perspective toward the crypto Market so the first thing that we have to know about volume.
Trading Volume:
Trading volume is the number of coins that have exchanged hands during a defined period
of time, usually 24 hours
Trading Volume of A Coin:
The trading volume of a coin is how much value of a coin has been bought and sold over 24 hrs.
Importance of Trading Volume:
For example, if a trader wants to take a trade on a coin so first, they tried to confirm trends and patterns of the coin with technical analysis because high or low trading volume attracts different types of traders and investors. Many traders and investors prefer a higher average daily trading volume compared to low trading volume, because with high volume it is easier to get into and out of positions. So therefore Trading Volume is an important metric in the crypto space
ref: https://www.investopedia.com/terms/a/averagedailytradingvolume.asp#:~:text=Average%20daily%20trading%20volume%20is,get%20into%20and%20out%20positions.
ref: https://www.bitrates.com/guides/terminology/trading-volume
Disclaimer: The post should not be considered financial advice. I do not give advice on financial products.
Trading volume is important to notice down Rugg pull projects
Yeah, trading volume depends on short term investment, but if you are investing for long-term, than volume varies from month to month, like for now days, volume of alts is much lesser than three months volume, and your were asking that, when people sell things than volume also increases but the dominance of respective alt decreases, so basically dominance is the most important thing than volume
Trading volume has a huge impact on the success of the project. It simply means that it is active on the market and lots of investors trust the whole project. It could increase the volatility of a coin which will also be profitable for most traders. Nowadays, fake volume is also existing for some developers to hype the project so we must be skeptical and careful. It's still important to do research first.
Honestly, for me, the volume of operations can be important if it is reflected in the chart of the currency in question, I can have thousands of operations and this can be done as a well-known exchange, they use many bots making purchases of 1 dollar and it is enough to make a "fictitious" volume that obviously will not be reflected in the total volume, apart from the fact that it is not consolidated, it is more difficult to predict accordingly, another thing is the volume of the chart, according to that volume if it seems to me that it is like a coin or action speaks but if and only if when you know how to interpret.
I think one of the factors that influence the success of a trading or investment is to see or read the trading volume, because most coins that experience an increase in sales volume in the market will most likely experience an increase, and it is very rare to see coins that do not have large sales volumes. will experience an increase in price, which is why it is very important before starting to invest to read the sales volume.
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 ?
Yes it is, in order for you to see if the team is just manipulating the market or just using bot to increase the price you should compare the trading volume to order books. I have an experienced before in one of my asset, team uses bot so they can tweak the price even though the reality it is just them buying and selling the token, if the team continues to do like this it is just means they only have a few investors and traders.
I think reading trading volume is very important, because I realized that recently,
I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator
If someone is using technical analysis then they need to use the volume to improve their trading strategy, after all while there are a lot of indicators out there the price at any period only has 5 characteristics, open, low, high, close and volume, by excluding volume from your strategy you are already missing 20% of the information the market is giving you so it is expected that your trading system will never be as good as it could be. I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator
I think reading trading volume is very important, because I realized that recently,
I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator
I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator
High volume can not determine whether the project is good or not. Because volume can also change rapidly as the number of trades passes. What determines it is if the large volume lasts long enough I think it's a lot of investing there, but if it suddenly rises and drops suddenly, it looks like someone is buying or selling madly, like flash pumps and flash dumps.
It is one of important metric i think, but not the most important because some exchanges can manipulate their trading volume.
Even decentralized exchanges volume can be manipulated by wash trading their own coin, buy and sell repeatedly.
We should look for another aspects other than trading volume to measure the project quality.
Even decentralized exchanges volume can be manipulated by wash trading their own coin, buy and sell repeatedly.
We should look for another aspects other than trading volume to measure the project quality.
For me, the volume is the metric that speaks about the market, the only one that you have to know how to interpret and have clarity according to the volume, of course I have always thought that the volume in crypto cannot give us all the necessary information because the volume is not consolidated , so the volume that we handle has a lot to do with what is required of each eexchange, so to give us an idea we always look for the exchanges that handle the highest volume, such as Binance, bitfinex, kraken, among others, I think all this influences to give us an better information and not see it as a way of gambling, for me this is the most important metric of all.
High trading volume doesn't guarantee that the coin is good.
There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.
If it was not an important metric then those exchanges will not take the time to fake it at all, what we need to do is to find exchanges which do not fake that data or at least find a way to filter that information, it is not easy but it is something that we must do as the volume of a coin is an incredibly important metric, as it tell us how much money is moving in that coin every single day, and if the amount is too low then it is important to stay away from it, as it becomes way easier to manipulate the price of that coin. There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.
High trading volume doesn't guarantee that the coin is good.
There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.
There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.
For me, yes.
I will prefer to choose trading coins that have higher trading volume than those lower enough. Low trading volume may have smaller chance to rise up although it may grow higher by processs. But, it is too risky, isn't it?
if we are trading, the high differences between order book buy and order sell will also determine the volume.
But, this is not the only one to consider, it is one of the elements or aspects that I am considering when analysing the amrket. Moroeve rif the coins are for long term holding.
I will prefer to choose trading coins that have higher trading volume than those lower enough. Low trading volume may have smaller chance to rise up although it may grow higher by processs. But, it is too risky, isn't it?
if we are trading, the high differences between order book buy and order sell will also determine the volume.
But, this is not the only one to consider, it is one of the elements or aspects that I am considering when analysing the amrket. Moroeve rif the coins are for long term holding.
It could be deciding metric but then again that if it isn't manipulated.
As you might figured out, so many shitcoins actually manipulating their trading volume so that they didn't get delisted from an exchange.
Sometimes shitcoins are also manipulating the trading volume to give off this kind of illusion that their shitcoin are famous.
So basically sometimes trading volume could be an irrelevant metric instead if it's truly fabricated.
As you might figured out, so many shitcoins actually manipulating their trading volume so that they didn't get delisted from an exchange.
Sometimes shitcoins are also manipulating the trading volume to give off this kind of illusion that their shitcoin are famous.
So basically sometimes trading volume could be an irrelevant metric instead if it's truly fabricated.
Trading volume isn't the only important metric when it comes to researching a coin, to see how it's doing. For example, if a new coin list on the exchange, its trading volume will be low. If the market was in a bear season like it was today, its trading volume will also be lower than it was before.
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 coin that you will invest while investing will be invested only after seeing the market volume and popularity within 24 hours.If the trading volume is low in 24 hours, you should take a break from that coin, check it carefully and then invest.The coins that have the highest trading volume are the ones that you will put in the first stage for investment. How do you check the "order books" ? I'm only using CoinGecko here
Trying to decide whether Celsius is a good buy or not
Coingecko is a means of viewing a price volume market cap etc. You can easily see all the details of all the coins that are listed here.It is used by many and is a very popular site. Here you can add portfolio of all your coins. Trying to decide whether Celsius is a good buy or not
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 ?
I don't think that trading volume is the most important factor. The most important ones for a new project for me are the team, the roadmap, the use-case of the project and also the tokenomics. The trading volume is also not that unimportant though. When you are exclusively talking about very new projects like projects that have just launched on that day, then i think most of those projects will have a decent volume if they were able to create a minimum of awareness and interest for their token.
Projects that are on the market for a little longer but still very small can be different though. There are a lot of projects out there that have trading volumes of a few hundred dollars a day. This is a very bad sign in my opinion and i would not invest in such projects because they are almost dead and a id size sell or buy order would probably mess up the price.
We can see the trading volume in the market in the order book status that occurs in the market and the order depth is not too large, the token project has a good trading volume and you can also see the trading volume within 1 week or 1 month so that's how you can see how much large trading volume on the project so you are even more confident when you want to enter a new project.
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 ?
Trading volume is the result of buying and selling in an exchange, of course if all of them sell will make the volume increase. But we look not only based on trading volume, but also the level of price stability in an exchange.
When you trade on the exchange, some orders seem to move quickly, this is due to the volume of trading using bots, I believe investors choose coins with large trading volumes, it is chosen to do scalping, some investors who are already familiar with crypto will saw the trading volume and they placed several large orders.
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This is the most important metric although sometime this can be manipulated easily when it comes from the whales and centralized exchange site. The main concern is when people are looking for the good token or coin and they will always be seeing the trading volume as the most important thing.
Token will have very high volatility caused by low liquidity even some may be trapped caused by the liquidity was not enough for him to sell his token to the exchange site.
This is the main thing that must be used by anyone before try to invest in the crypto
Token will have very high volatility caused by low liquidity even some may be trapped caused by the liquidity was not enough for him to sell his token to the exchange site.
This is the main thing that must be used by anyone before try to invest in the crypto
In investing in trading volume, it is always relied on in assessing a project, and it is indeed proven that the trading volume of a project is large, so the project is indeed targeted by many investors and can achieve the targets that have been set, but we must know that some fraudulent projects use fake trading volumes to bind investors, so we must always check in detail so as not to enter the fraudulent project.
Usually the trading volume is a sign that the projects we participate in can develop if the volume is large, and this we have often found in potential coins that are always increasing all the time in volume, but there are also some projects that do create fake scenarios so that investors are interested in participating in the project but at the end it is just a joke that makes big losses, then in addition to the matrix we must also look at the performance of the team that manages a project.
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 ?
Trading volume doesn't really mean a project is good to invest on because there are a lot a fake volumes out there on pump and dump projects.
So.. As a project get stronger or have more use case or get popular, the volume will increase.
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 ?
Trading volume doesn't really mean a project is good to invest on because there are a lot a fake volumes out there on pump and dump projects.
So.. As a project get stronger or have more use case or get popular, the volume will increase.
How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ?
Yes, a higher trading volume means that more people are holding and trading the coins. It means that the chance to rise up may be much better. More importantly, this coin may have long survived in the market. But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?
No offense, when this happens, all coins will also experience the same, crash price. if more people are selling panic, the price can crash more easily. But this doesn't relate too much to the trading volume. On the other hand, if it only has very small or no trading volume, it means no hope for the future of this coin, will be dead soon project probably
As a new project that just listed less than a weak with much trading value, I mean liquidity, it means really have to make a research about the if it's real or bot is trading to make the trading a high impact in trading volume (liquidaty) and also check the trading history and pending order on exchange for better understanding.
Honestly trading volume hardly could affect the price movement in most of the altcoins but enough sign that this altcoins is famous for the majority of holders.
Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.
It does affect if a coin with a low trading volume jumps up in price like 10x or something, it was super risky for any new investors looking to buy the coin since they could fall for a pump run. Delist doesn't matter since if your coin got delisted, it would be a bad press for that coin. More chance for dev of that coin creating some fake trading volume to keep their coin list on that exchange. Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.
How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ?
I think the buy order is more important than just the trading volume. Buy order shows how much is the demand for that project. Volume can be cheated through wash trading but buy orders can't be cheated.
But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?
That is why it is better to check the buy order if the demand support for the project is strong.
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 ?
If there is NO volume it shows no interest in the project. You could have a coin with a high price but no movement in volume you can probably expect a drop in price. I think volume is a key factor when looking for trade opportunities.
Honestly trading volume hardly could affect the price movement in most of the altcoins but enough sign that this altcoins is famous for the majority of holders.
Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.
Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.
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 ?
Trading volume can't be a deciding factor because its is easy for an exchange to increase the volume of particular coin or token by faking the trade orders and also there is a term for this which is wash trading, before investing in a project you need to start with the fundamental analysis then start looking the trading volume and all.
It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
Yes, but it's not the only metrics that we need to look up. There are a lot that can really influence or at least a indicator where the price will be going.
Top 10 altcoins are liquid already, but the question is the rest because some of them are being used for pump and dump, artificially increasing the trading volume. While others, there are no movement at all.
It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
It's true what you said, that volume is important enough to run a certain coin, altcoin liquidity can be seen by trading volume, but market capitalization is something that is also very much needed, and in my opinion both are quite needed to see the development of a coin, without all that, then coins are difficult to achieve new ATH, because both are needed for the development of an existing coin You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.
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 ?
Trading volume can't be a deciding factor because its is easy for an exchange to increase the volume of particular coin or token by faking the trade orders and also there is a term for this which is wash trading, before investing in a project you need to start with the fundamental analysis then start looking the trading volume and all. 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.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.
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.
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.?
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.
Back to the order book.
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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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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. 
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.
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.
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.
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. 
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.
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
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"?
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?
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
And FYI... I did check my "see replies to your post" prior to posting that , did not find the thread there, it was gone
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
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
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
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.
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
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.
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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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 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 
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 ?
In order to attract investors, some exchanger give the facility to increasing the trade volume. Seeing that, many investors are tempted there. So not by looking at the trade volume, but by investigation at the order book, you have to understand whether it is fake or real. Most probably those are shit coins they try to do it to attract investors response by setting bot trading. 
For me, trading volume is like a way to measure how it is popular or how much money is flowing there, volume, it's more on trading activity, if it's active, lot of buyers/sellers.
So for me, you should also consider the market capitalization too, not only the trading volume.
So for me, you should also consider the market capitalization too, not only the trading volume.
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 ?
Depends, if it's only listed in single exchanges then there is a tendency that it was being manipulated by a single person or the team behind the project. That's why we are looking for liquidity here where multiple exchanges have the coins and the volumes are quite similar with their price being stable in a day. I experienced some coins where they only focus on one exchange and they dump it in one single move by selling everything they have. that's why things like that are hard to trust especially when involving a huge amount of money.
Trading volume is very important in trading. especially for a day trader. because of the high demand for buying and selling can facilitate or speed up the execution of a request for sale/purchase. In contrast to the low volume, it will be very difficult when we want to immediately execute a buy/sell request.
However, when talking about long-term investment, it will be more profitable if we enter a coin or asset whose trading volume is still low, which means that the market cap is usually still low. so the potential increase is still visible. especially if it is seen that the trading volume is increasing, it can be ascertained that there will be an increase that follows also the price (on a note that the asset or coin has good potential with clear fundamentals and utilities).
However, when talking about long-term investment, it will be more profitable if we enter a coin or asset whose trading volume is still low, which means that the market cap is usually still low. so the potential increase is still visible. especially if it is seen that the trading volume is increasing, it can be ascertained that there will be an increase that follows also the price (on a note that the asset or coin has good potential with clear fundamentals and utilities).
That needs to be analyzed even deeper. Trading volume is really important caused by this is reflecting the demand for the token. I meant the trading volume means total buy and sell orders in the market and so, will you invest in the new token with nearly zero trading volume?
The high the better as long as this trading volume was real. In the crypto you need good volume to liquidate your portfolios to minimize the impact caused by the slippage in the price.
Besid the selling of but as long as there would be enough order in the market and that's not something wrong. Buy and sell can be considered as the trading volume in the market.
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 is exactly important.Simply,' how can we invest in something that nobody wants to buy the coin or token?
If we are buying and investing in a certain coin, and we are expecting to get high profits from it, but there is very small trading volume, it means that there may be small hope for future profits mate. How can people trust a token or coin which only small or even nobody will buy them right now and moreover in the future?
As here like what said is true:
You should be compared to the order books.
Many new shit coins or tokens will have very high order sales, but very small order buy with a very high gap. This kind of investment will be very risky. 
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 ?
Trading volume is not a 100% verifiable metric. Because the trading volume of many coins and tokens is done with washtrade. This means that we cannot make a 100% accurate measurement. That's why investing and trading in major coins is always more secure. Also an important information; If a coin is experiencing a price drop while at low volume, it is a sign of bullish divergence.
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 ?
When I do trading and choosing coins, I'd use to check their trade volume as the higher the better. Seeing this means that the project is moving in the market and it means that the project has the potential demand. But if we saw selling demand, that is something it catches attention and probably there is a problem with that project, you'd better stay away from that.This is to say how important to check the market trend buy/sell volume as from that point, we can assess the project if we can make a profit or just lose.
trading volume is quite important honestly, if you're long term holders you should look into the trading volume of an altcoins that you want to invest because it gonna keeps the altcoin from delisted by the exchange if the trading volume isn't sufficient.
I'd also consider this as the thing that reflects overall fame and popularity of an altcoins since greater trading volume could means that the altcoin might have a great future ahead.
I'd also consider this as the thing that reflects overall fame and popularity of an altcoins since greater trading volume could means that the altcoin might have a great future ahead.
How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ?
It's an indicator that the coin or token is less likely to be pumped and dumped so easily.How do you check the "order books" ? I'm only using CoinGecko here
Buy order and sell order on an exchange.Check the gaps in prices.
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
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 ?
Trading volume is very important to see how enthusiastically people are trading on the token, but that doesn't mean a high trading volume indicates the project is a good one for you to invest in. As @ryzaadit already said, if you see a high trading volume, you should compare it to the order book, if you see a strong order book, it means that people are very enthusiastic about trading the token.
Trade volume is often inflated, so do not focus on it much. Don't forget that trading volume, which is shown on trading platforms, is not always the transactions of real people, bots are also involved. Obviously, this can be one of the metrics when choosing a project or deciding to buy/sell it. If you are concerned about trading volume formed on large-scale selloffs, it is also worth paying attention to the order book and looking at the depth of the market. If there are only sellers in the market, and the demand from buyers is very minimal, then clearly this project at the moment is not of interest in terms of investment.
Trading volume is a fact when you are choosing an altcoin for trading. But it doesn't indicate you should be involved with the trade. If there is no trading volume that means no one buying or selling, it's a kind of dead token. If the trading volume is high due to selling pressure like what happened to Luna, then it's highly risky. If the candle is green and trading volume is high that means you might consider trading. But it doesn't mean you can make a profit, the price would dump at any time. It's crypto and always risky.
Trading volume is the amount and number of assets traded, whether crypto or fiat. Where a transaction happened, and the factors of it are
This won't correlate with how much a project could be worth because you can quickly inflate the trading volume by hiring the right people. I know there are some services you could do, and some algo trading bots would also be suitable for that.
That wouldn't be a definite signal for you. It might be hard to do if you were to follow that type of indicator.
- Quantity
- Price sold
This won't correlate with how much a project could be worth because you can quickly inflate the trading volume by hiring the right people. I know there are some services you could do, and some algo trading bots would also be suitable for that.
That wouldn't be a definite signal for you. It might be hard to do if you were to follow that type of indicator.
One of the most important things for traders is to keep track of the trading volume. It gives them an idea of how much activity is happening at any given time and in what direction. Trading volume comes with a couple of advantages and disadvantages, so it shouldn't be approached without understanding all the possible outcomes.onthe other hand, trading volume can be faked. To avoid being deceived by fake volumes, you need to understand the order book which is a list of low sell and buy prices
Whoa ! Several low cap Altcoins are now at zero trading volume !!
Even some of the good ones !
Okay so lets explore this.... if trading volume is at zero... does that mean that any purchase would make the price go up ? ( in theory ) So then would it be possible to push that price upwards by making a not so small purchase ? ( like $1000 or $2000 ) If this is true, then you could in theory manipulate that market in your favour, and get possibly a 2X or a 3X out of it, if trading volume is zero. I'm talking about very very small low caps though, which are already 0.00 something at least.
In case you think this is impossible... I saw it happen with one particular Altcoin in the top 1000. The price was so low a few days ago, I think it hit negative 99.8 per cent or something, that one large purchase made it go up 950% in one day !! Only in crypto !!
Even some of the good ones !
Okay so lets explore this.... if trading volume is at zero... does that mean that any purchase would make the price go up ? ( in theory ) So then would it be possible to push that price upwards by making a not so small purchase ? ( like $1000 or $2000 ) If this is true, then you could in theory manipulate that market in your favour, and get possibly a 2X or a 3X out of it, if trading volume is zero. I'm talking about very very small low caps though, which are already 0.00 something at least.
In case you think this is impossible... I saw it happen with one particular Altcoin in the top 1000. The price was so low a few days ago, I think it hit negative 99.8 per cent or something, that one large purchase made it go up 950% in one day !! Only in crypto !!
If talking of trading volume it the combination of sells and buys that counts on the trading volume and before investing your money on a project should from $1mio then you can invest. Therefore, looking at what amount is on lockup and how much is team holding as well.
One of the Altcoins I hold has a trading volume of $120 ! ( no typo ) And it's doing very well ! ( up 9% today )
It's not a meme coin but ranked seven thousand three hundred and something.
It's not a meme coin but ranked seven thousand three hundred and something.
I think trading volume can be an important metric to choose a new project for investment. But first you have to find out whether this trading volume is real or fake. Because many new projects create fake trading volume to attract investors. You can understand this by looking at the order book.
How do you check the "order books" ? I'm only using CoinGecko here
Trying to decide whether Celsius is a good buy or not
Trying to decide whether Celsius is a good buy or not
You should be compared to the order books.
Some exchanges are doing wash trading, by make a bot transaction to increase the volume of trading coin/token in their exchange. If you see a token with high volume but a soft order book: 90% of them is a wash trading. Why volume & order book is important, because with high volume and a strong orderbook you are easily to sell off your larger asset.
Doesn't matter, If there has some larger sell as long the order book is strong is good. Anyone dump by single person is also good, because you can spread the token to more people.
I agree with you.Some exchanges are doing wash trading, by make a bot transaction to increase the volume of trading coin/token in their exchange. If you see a token with high volume but a soft order book: 90% of them is a wash trading. Why volume & order book is important, because with high volume and a strong orderbook you are easily to sell off your larger asset.
Doesn't matter, If there has some larger sell as long the order book is strong is good. Anyone dump by single person is also good, because you can spread the token to more people.
Before I knew crypto too far. Both technical trading news and the like I thought that the market was no different. But after I owned several exchanges I realized that some orders were quiet and tended to be slow. this made me ask myself.
How many times have I sold tokens and it was long enough for people to ask for them even though the base price and ups were not too far away. creeping transactions don't fluctuate naturally.
if it doesn't happen what you mentioned earlier, it's not possible because it's illogical and solid as if it were walking in place.
I only sold a few bucks and needed a few days for the price to match.
how important is volume and the art of playing in calculating the development of projects and the rapid growth of the market.
You should be compared to the order books.
Some exchanges are doing wash trading, by make a bot transaction to increase the volume of trading coin/token in their exchange. If you see a token with high volume but a soft order book: 90% of them is a wash trading. Why volume & order book is important, because with high volume and a strong orderbook you are easily to sell off your larger asset.
Doesn't matter, If there has some larger sell as long the order book is strong is good. Anyone dump by single person is also good, because you can spread the token to more people.
Some exchanges are doing wash trading, by make a bot transaction to increase the volume of trading coin/token in their exchange. If you see a token with high volume but a soft order book: 90% of them is a wash trading. Why volume & order book is important, because with high volume and a strong orderbook you are easily to sell off your larger asset.
Doesn't matter, If there has some larger sell as long the order book is strong is good. Anyone dump by single person is also good, because you can spread the token to more people.
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 ?
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