Every day, numerous transactions take place on cryptocurrency exchanges. Analysts and automated systems calculate various indicators for each cryptocurrency, as well as track the performance of exchange platforms. Trading volume is one of the most important parameters in cryptocurrency trading.

What is Trading Volume

Trading volume or transaction volume is the amount of cryptocurrency exchanged over a specified time period. Volume is most often indicated for the previous 24 hours, however weekly and monthly indicators are also relevant. Conditionally, several types of volume can be distinguished:

The latter type should be considered in more detail.

Trading Volume of a Specific Cryptocurrency

Usually, volume is indicated in dollar equivalent — this indicator is most informative for market participants. The trading volume of a specific cryptocurrency can be indicated:

• for a specific exchange — for example, on Binance exchange, a certain number of Bitcoin transactions were made for a specific amount over 24 hours;
• for the cryptocurrency as a whole — there are services that account for all transactions with the selected cryptocurrency over the past 24 hours.

Such services additionally provide the following data:

• market capitalization of the cryptocurrency;
• current supply and total emission;
• current asset value and so on.

By studying the volume and the above-mentioned indicators, a trader will get an understanding of the current liquidity of the asset and market sentiment. This will allow making decisions to open or close deals with crypto assets.

Trading Volume Indicator