What is (trading) volume in crypto?
Quick Summary
Crypto volume refers to the total amount of a cryptocurrency that's been traded over a certain period.
Trading volume is super important for technical analysis, price predictions, and understanding overall market activity.
You can use volume to:
- Do technical analysis
- Spot price moves early
- Gauge market stability
- See how much market share a coin has
What is volume?
Volume in crypto means the total amount of a coin that's been bought and sold over a specific time frame.
Basically, it tells you how much action there is around a coin—how much is being traded.
What is trading volume?
Trading volume is the total value of all transactions (in euros or dollars, for example) over a certain time.
For instance: if the trading volume of Bitcoin is €10 billion today, that means €10 billion worth of Bitcoin has changed hands across the market today.
It measures how active the market is:
- High volume means lots of interest and activity
- Low volume usually means things are kinda quiet
What does volume mean in crypto?
When someone says crypto volume is high, they mean there’s a lot of trading happening around a particular coin.
You can easily check a coin’s volume on the Finst platform:
- Search for the coin you’re interested in
- Click on it to view the market data
- You’ll see things like market cap, volume, number of coins in circulation, and trading activity
Historically, Bitcoin has always had the highest trading volume of any crypto.
Why is volume important in crypto?
Tracking volume can give you key insights, like:
-
Predicting price moves:
A sudden rise in volume might mean a big price move is coming—up or down. -
Spotting market trends:
In bull markets, volume usually rises. In bear markets, it tends to fall. -
Catching whales (big players):
Whales can cause sudden price swings, especially with smaller coins.For example:
When lots of people start buying Bitcoin, the cheap sell orders get eaten up fast, pushing the price higher. On the flip side, if a ton of people start selling, sellers may have to lower their price to attract buyers.
How to use trading volume in technical analysis?
Volume is one of the go-to tools in technical analysis:
-
Breakouts:
A spike in volume can signal a breakout from a chart pattern. -
Trend reversals:
Super high volume after a long trend can be a sign the trend is about to flip. -
Market liquidity:
Coins with high trading volume are generally easier to buy and sell without major price swings.
On most charts, volume is shown as color-coded bars at the bottom:
- Green = upward movement
- Red = downward movement
What can you use trading volume for?
In short, you can use trading volume to:
- Do technical or fundamental analysis
- Spot trends early
- Predict price moves ahead of time
- Measure a coin’s liquidity and market stability
- See how much market share a coin has vs. the rest
A healthy crypto market always has solid volume—enough buyers and sellers to handle large trades without wild price swings.
Conclusion: What is volume in crypto?
Now you know what volume and trading volume mean in the crypto world.
By keeping an eye on it, you’ll be able to:
- Make smarter investment choices
- Predict price moves better
- Catch big trends early
Wanna learn more about technical analysis or other crypto basics?
Check out our other quick crypto lessons.
