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Rachel Welch

06 November 2022 65 Read Resources

What is Volume in Cryptocurrency?

Volume is a useful metric to understand cryptocurrency prices. It can be calculated in many ways, including multiplying the market cap by the number of coins in circulation. This will give you an estimate of how many coins are traded per day. You can also use the volume to see trends in the market or where to invest further.

High volume means there is a lot of interest in a certain coin, which can increase its price. Conversely, low volume can mean the coin has a low interest level, which can be detrimental for traders. This can result in higher cost and more slippage. A low volume can also result in no buy orders, which can increase the risk of losing money.