Hello, my dear crypto-buddies! 👋😎
How are the deals going on?😊
Have You made a ptofit today or not yet?😉
Here is some long and a little-bit boring blah-blah-blah 😳😫 material. I hope that maybe it will helpful for some of us...including me.😉
During deals a lot of traders are looking for 👀 trading volume 👀.
So what is the trading volume, what does it show and how can it help? 😡
Crypto trading volume tells us how active trading is for a particular cryptocurrency. It measures the number of times a particular coin changes hands over a certain time frame.
Investors refer to this metric to see how popular it is to sell or buy a particular asset at any given time. The most common timeframe for measuring crypto trading volume is 24 hours. To calculate cryptocurrency trading volume, just define the total amount of crypto that changed hands or was traded in a particular period. Cryptocurrency trading volume is an indication of interest in a particular coin: the more people are selling and buying crypto, the greater is the volume.
Low crypto trading volume implies that investors may not be interested in selling or buying an asset. CoinDesk Markets conducted poll in 2018 shows that volume was the preferred price indicator for around 38% of the respondents. The major reason is that volume is more objective while other technical indicators rely on one’s ability to interpret charts. High crypto trading volume can indicate a rise in prices, and low volume could imply prices are falling. High trading volume translates to higher stability and liquidity.
" If a particular crypto's price rises but trading volume is low then it can be a sign that only a handful of people are trading, i.e. crypto whales are manipulating the price."
Crypto market cap is the total value of a cryptocurrency, calculated by multiplying its current price by the number of coins in circulation:
Market Cap = Price per Coin/Token * Circulating Supply
It indicates a cryptocurrency’s size (overall value compared to others in the market), adoption (how widely it’s used or trusted), liquidity (how easily it can be bought or sold without affecting price), and market stability (resistance to large price swings), with higher market caps typically signaling wider acceptance and less volatility.
A high market cap usually means that the cryptocurrency is well-known, widely used, and trusted, making the coin more stable because its price is less likely to change dramatically with small trades. Coins with a high market cap may attract institutional investors, reinforcing trust and legitimacy. When the price of a cryptocurrency increases, its market cap grows but if the price drops, the market cap shrinks.
However, changes in market cap can also result from a change in the total number of coins in circulation, not just the price.
Circulating Supply tells you how many coins or tokens of a cryptocurrency are available and being used. By dividing the circulating supply by the maximum supply, you can find out how much of the coin has already been mined or distributed. It affects how valuable a cryptocurrency is and how much it’s worth.
Conclusion: Market Cap shows you how important a cryptocurrency is, Trading Volume tells you how busy the market is, and Circulating Supply shows you how many coins or tokens are available.
If trading volume significantly exceeds the market cap, it can signal unusual trading interest, which might lead to quick price swings. High volume over market cap may be a short-term trend, and prices can stabilize or drop once trading activity decreases.
Hope, this info will be useful for You, especially for newcomers 😇 who decide to trade with leading crypto-assets like $BTC
or $ETH
or altcoins like SOL, XRP, DOGE, PEPE or other.
If it was useful, just like, repost and reply with Your good comments, friends.😉
Wishing a good luck to all of You!👍😎👍
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