What is volume coin? This is one of the very important factors in the crypto market investment strategy. If you are intending to participate or you are a newcomer to investing, you should learn about the concept of volume.
1 – What is volume coin?
Volume coin is a metric that measures the trading volume of a coin over a certain period of time. Volume coin is calculated by the total amount of coins or tokens sold or bought in a certain period of time.
As shown below you can see the transaction volume of bitcoin (BTC) within 24 hours.
Looking at the price chart of bitcoin you will also know the volatility of price and volume.
Thus, the volume is meant to show you the liquidity of a certain crypto, based on this information you will evaluate the potential level of the crypto in the future and investment strategy.
With coins with a higher level of liquidity, when you invest, you can sell at any time. In contrast, with coins with low liquidity, it is more difficult for you to sell.
2 – How important is volume coin in investment?
Helps you to know the high or low liquidity of a crypto.
Helps you assess the potential level and trend of the crypto in the future.
3 – Sites to watch volume coins
Through the knowledge I shared above, you must have seen how important and helpful volume is when trading crypto in particular as well as other financial markets.
If you have any effective ways to trade with volume, please share with us and everyone in the comments section below. Good luck to you!