Cryptomarkt may act like a runaway roller coaster. The course shoots, plunge, and everyone shouts at the same time: Purchase! To sell! To obsession!
But if you want to bring some peace in the confusion, there is an indicator that you can pay a better cost than online buzz.
Many people are blindly staring at the price. You can understand. But without context, such price exercises rarely say. The increase in volume is the same as the applause of the empty room. It may sound impressive, but who actually applauded?
What exactly is the volume and why is it important?
The same explanation: The volume of transactions indicates how many currency units have been traded in a certain period of time. It can be a day, an hour or per minute. The higher the number, the more coins are traded. The more active, the more interest is.
This is not only useful for knowing people who are awake in the coin, but also useful for determining what the best encryption is in the short term and how quickly it can be purchased or sold. In markets with a lot of volume, transactions are smoother and faster.
In a market with little quantity? Then he will soon be trapped in the tangles of the syrup, a slow and unpredictable deal.
High activity means something
If the coin suddenly shows the highest volume, it is usually not a coincidence. It may be associated with positive news, such as Europe’s vivid crypto rules, large -scale subsidies lists, technology updates or pure speculations. Whatever the reason: what’s happening.
The volume works in a kind of thermometer. It tells us whether there is a fever in the market, cold or hanging between them. The price alone is not. For example, if the volume is low when it increases? Then it can show a temporary revival that is not supported by extensive interest.
The trader uses the volume to filter the signal.
This book is important for technical analysis in the short term. Traders use it to see if the trend is really powerful. Breakth breaks for resistance? wonderful. But if the volume is suddenly tripled, I know that it is not a coincidence. It is confirmation. I still guess without volume.
Conversely, it applies the same. If a coin drops almost no volume, no one needs to be awake. But with a lot of volume? Then people must actually take out the money and be careful.
Volume and fluidity proceed together
The market without volume is not only boring but also dangerous. If you want to sell your password, while there is no one to buy it, you have a problem. This is called lack of liquidity. And without fluidity, you can’t simply act quickly, so you can suffer tremendous losses.
In a vivid amount, you can recognize healthy coins in a short time. As well as overtime advertisements. The continuity of the trading volume ensures stability. And in the market, as irregular as encryption, stability is value.
What does the figures in 2024 and 2025 mean?
In 2024 you saw it happened again and again. When the amount around Bitcoin and Ether Leeum increased, clear price trends often followed and are the best at the end of the year.
Also consider the cases of Binance and Coinbase in March 2024, more than 40% of the amount of Binance and Coinbase. The peak was the beginning of a strong upward movement.
In addition, altcoins such as Solana and Avalanche are clearly seen in the fourth quarter of last year. As soon as the sheep exploded, the rally often followed. This market is not always guaranteed because nothing is guaranteed. But there is a pattern.
In January 2025, we once again saw how serious price fluctuations caused the ETF discussion and the volume of interest in interested universities. As soon as the news came, the market lived and volume increased. The link can not be ignored simply.
Conclusion: The volume is less than a lie or at least less than the price.
The volume can be viewed as the pulse of the market. It tells you whether you are alive or if you have exercise, and whether you should board. Of course, it is not a glass ball. But if you need to choose a tool based on a short -term strategy, trading volume is one of the most reliable things.
Therefore, if you are considering jumping from the coin next time, it will suddenly proceed quickly … first check the volume. If no one participates, it can be in an empty roller coaster.