What is Volume in Cryptocurrency World | Most Important Metric
What is Volume in Cryptocurrency? Volume refers to the total amount of a cryptocurrency traded in a given 24 hour period on a specific exchange. For example, suppose there’s a significant spike in the volume of bitcoin on site A. In that case, that means that there are more people trading bitcoin on that exchange than on-site B. Volume is an important metric to follow since it helps us determine how quickly the price of a coin can change. It’s also a good indication of trends, indicating whether a currency is sustainable. Volume is an essential metric for cryptocurrency investors. A high trading volume is usually a sign that a cryptocurrency is gaining popularity. However, if a coin has low volume, it’s a sign that it may be a fad and will be soon forgotten. For instance, if a coin has low volume but is generating a high amount of buzz, it’ll likely fail to attract the attention of investors. The volume of a cryptocurrency is comparable to its importance in the stock market. A la...
