Before diving into a crypto trade, volume is KEY!
What's "OK" Volume?
Volume-to-Market-Cap Ratio: Aim for 0.02-0.1 (2-10% of the coin's total value traded daily).
Higher Ratio = More liquidity, less price manipulation.
Lower Ratio = Be cautious!
But Wait, There's More!
Volume Trends: Look for consistent growth, not just a one-time spike.
Market Cap: Bigger coins often mean higher volume.
Your Strategy: High-frequency traders need HUGE volume, long-term holders not so much.
Risk Tolerance: High volume = less volatility (generally).
Disclaimer: Volume is just ONE piece of the puzzle.
Research fundamentals, team, tech, and market potential before investing!
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