Trading volume is a key indicator for assessing the state and efficiency of cryptocurrency exchanges. It provides insight into the operational dynamics of the exchange and user activity. This is why trading volume is important and what you need to consider when evaluating an exchange:
High liquidity: An exchange with high trading volume indicates a high level of liquidity. Liquidity is vital for traders as it ensures that they can execute buy and sell orders quickly without causing significant price fluctuations. In conditions of low liquidity, large buy or sell orders can lead to significant price disruptions.