Trading Volume

Trading volume is the total amount of an asset traded on a market over a period, usually reported per pair and per exchange over 24 hours, either in units of the coin or in currency value. It is the most common proxy for how active and liquid a market is: high volume generally means tighter spreads and easier entry and exit, while very low volume warns that positions may be hard to close without moving the price. Volume figures should be treated carefully, because aggregated data can include wash trading or double counting across venues. Volume shows how much changed hands, not whether buyers or sellers were dominant.