Volume
The total amount of cryptocurrency traded within a specific time period, usually 24 hours. High volume indicates active trading and better liquidity.
Last updated: January 5, 2025
What is Volume?
Volume is the total amount of cryptocurrency traded over a specific period, typically measured over 24 hours. It represents actual buying and selling activity and is a key indicator of market health and liquidity.
Why Volume Matters
Liquidity Indicator
- High volume = easy to trade
- Low volume = harder to buy/sell
- Affects slippage
Price Validity
- High volume price moves = significant
- Low volume moves = less reliable
- Confirms or questions trends
Market Interest
- Rising volume = increasing interest
- Falling volume = decreasing interest
- Measures engagement
Volume Metrics
24-Hour Volume
- Most commonly cited
- Total traded in last 24 hours
- Measured in USD or native token
Volume by Exchange
- Not all exchanges equal
- Some have wash trading
- Compare across platforms
Volume by Trading Pair
- BTC/USDT vs BTC/USD
- Different liquidity pools
- Check your specific pair
Reading Volume
High Volume
Indicates:
- Strong interest
- Better liquidity
- More reliable prices
- Easier to trade
Low Volume
Indicates:
- Less interest
- Potential liquidity issues
- Easier to manipulate
- Harder to exit large positions
Volume and Price Analysis
Volume Confirms Trends
Uptrend with Rising Volume
- Strong bullish signal
- Buyers stepping in
- Sustainable move
Uptrend with Falling Volume
- Weakening trend
- Fewer buyers
- Potential reversal
Downtrend with Rising Volume
- Strong selling pressure
- Capitulation possible
- Bearish confirmation
Downtrend with Falling Volume
- Selling exhaustion
- Potential bottom
- Watch for reversal
Exchange Volume Rankings
Top Exchanges by Volume
- Binance - $10B+ daily
- Coinbase - $1-2B daily
- OKX - $2-3B daily
- Bybit - $2-3B daily
- Kraken - $500M-1B daily
Volumes vary significantly by market conditions
Verify on Multiple Sources
- CoinGecko
- CoinMarketCap
- Exchange official data
- Look for discrepancies
Wash Trading Warning
What It Is
Fake volume from trading with yourself:
- Inflates perceived volume
- Common on some exchanges
- Misleading to traders
How to Spot
- Volume without price impact
- Suspiciously high volume
- No corresponding order book depth
- Listed on obscure exchanges only
Trust Adjusted Volume
Some sites show “real” volume:
- Adjusted for wash trading
- More accurate picture
- CoinGecko does this
Volume by Market Type
Spot Volume
- Actual crypto trading
- Direct ownership
- Most straightforward
Futures/Derivatives Volume
- Often much higher
- Leveraged trading
- Doesn’t represent actual crypto traded
Combined vs Separate
- Some sites combine
- Others separate
- Know what you’re looking at
Using Volume in Trading
For Entry/Exit
- Higher volume = better execution
- Time trades during active hours
- Avoid illiquid periods
For Analysis
- Confirm breakouts with volume
- Question moves without volume
- Watch for volume divergences
For Risk Management
- Low volume = wider stops
- High volume = tighter execution
- Factor into position sizing
Volume on Exchanges
Binance
- Highest spot and futures volume
- Very liquid for major pairs
- Good for large orders
Coinbase
- High volume for US
- Institutional presence
- Reliable volume data
Kraken
- Lower but real volume
- No wash trading concerns
- Quality over quantity
Checking Volume
Before Trading
- Check 24h volume on pair
- Compare to your order size
- Check order book depth
- Consider time of day
Rule of Thumb
Trade under 1% of daily volume to minimize impact
Volume Indicators
On-Balance Volume (OBV)
- Cumulative volume indicator
- Adds/subtracts based on price direction
- Shows money flow
Volume Profile
- Shows volume at each price level
- Identifies support/resistance
- Advanced analysis tool
Ready to Start Trading?
Now that you understand volume, explore the best exchanges to begin your crypto journey.