Bitcoin Forum

Hi,

So on Coinbase, the "Volume" of any crypto has unit measurement of $.

However my understanding of Trading volume is the amount of crypto that is traded (not the value)

So for example, if in the past 24 hours for Bitcoin there was only one transaction pair - Someone sells one bitcoin for $50k and someone buys it for $50k.

I would expect the Volume to be 1 and not $50k.


Am I missing something?

Thanks

https://www.coingecko.com/en/exchanges/coinbase-exchange
What is the difference in which currency to measure the trading volume?
In what currency, then, to measure the trading volume of ETH/DOT?
On coingecko, you can get this data in most cryptocurrencies or the world's fiat currencies.

I guess it's just for convenience because it's also a standard practice. Whether it's crypto, stock market, or even gold, it's easier for people to understand financial data when they are converted into their fiat value.

Good thing data aggregators such as Coinmarketcap and Coingecko gives users the option to change currency. You can view trade volume and market cap in BTC, ETH, or other supported currency.

It is because USD is the common base currency for everything in existence. Crypto, Gold, Oil, Real Estate, Cars, Food, Water... Anything you name it. We simply value things in USD. So, if somebody bought 2 abc coins for $100k, now the transaction volume for that coin is $100k. Not 2 abc coins. How are you gonna make any comparisons between the other assets otherwise?

Thank you that makes sense.

I was thinking in my head that it is the number of people trading (actual volume) that is important in determining how the market may move, but I was mistaken. It's actually the value. One whale trading $100M will move the market more than a thousand traders trading pennies.

Thank you for clarifying

The dollar ($) is a base currency in the whole world and it is the most usable currency in the world also. The value of crypto is always going up and down and at last, we have to convert it into our local bank currency to take the earning to our bank. The value of the centralized currency will never fluctuate and we will compare the price with the help of the currency value. This is the reason that we will measure the volume of trade in the dollar ($).

I think your approach does not really make sense because that way you can not compare the trading volume between different projects or coins or tokens. Let's say you have trade A which is a guy buying 1 bitcoin with usdt and you have trade B where another person is buying 1 ETH with USDT. If we follow your approach then the trading volume of both trades would be 1. One bitcoin is worth more than 40k $ though and 1 ETH is "only" worth 3200 $, so in order to prevent such misinterpretations the trading volume is always shown in the same unit for all trading pairs, most of the time those are FIAT values but you can also display them as BTC values.

There's an option where you can check the BTC volume, but since USD is the standard monetary value in the world, everything is measured by USD, it's just like a global language where everyone will understand.

Thank you, I understand as mentioned in my reply above.

I do want to point out then that maybe the term "Volume" is misleading then, as the actual definition of Trading Volume is that that I originally described (by unit).

What it is actually displaying is Value of the volume.

Thank you,

EDIT:

Might I also add that I am not asking why it is USD vs another currency which some of you seem to imply. But rather why it is USD vs unit.

Now we not only enjoy trading with fair fiat, we can even trade crypto as trading. Like eth/slp/usdt/eth. That is an alternative fair of bitcoin and its volume will be calculated based on the fair used to buy. It's not just based on currency.

Obviously, we are still measuring everything is $ value, every crypto has it's fiat equivalent right?

So I guess I would say that this is just normal for every financial market as we all know that $$$ is still the world currency so everything is base on it. You can do multiple conversions and can measure your profit in your local currency, but the base is still the $$$.

This is similar to the most valuable products, as we know that each product has a financial exchange in the local currency Or usd $$!! As for the trading volume, it varies from one currency to another, as there is always fluctuation in the price and instability around the clock daily and weekly… :-\


 

We should not forget that USD is a standard unit to value almost every product used worldwide. But this is not that important if you want to use another unit. In almost all platforms, you can use your preferred FIAT currency from a long list of major international currencies to check the value of a coin. This option is available in CoinGecko for instance and in coinmarketcap as well.
Nowadays, we have stable coins valued by the American dollar and its used within exchanges to determine how much it costs per unit.

I think that checking information on one exchange does not give a good picture of what is happening in the entire market. If you have doubts about the volume, you can check it on Coinmarketcap or Coingecko for comparison. In addition, there you can choose the currency in which you want to have such information.

they count the amount of money that was moved (buying and selling) during a certain period, I think it makes sense to some extent, because they say the trading volume, at first I thought the correct thing would be that they should put how many currencies were traded during a given day, but then I realized that it makes more sense to put the money moved as volume

They are following the global currency used and USD has been agreed by the majority, but I guess there is no problem with that.
If that will find difficult for you to understand, you can set your own but you can't change what has been set by the exchanger.
No, nothing at all. It was just not clear for you but you need not make it as a big deal, instead, you'd rather accept that $ is what we use for easy communication.

You are right when you say, but this is something that is made to make people's work easier, and the dollar is a currency that is accepted worldwide and widely used for trade. You can easily understand whether the cryptocurrencies standing in dollars are increasing or not. I recommend using dollars, always and by all means. Your local currencies will always mislead you and cause you loss in dollar increases and decreases.

I think it's already the best way to describe it with USD, why not the coin itself ? it's simply because each coin has different total supply and if the volume called with total coins traded it will be hard to describe directly how big the volume of the coins itself in USD because we have to check the total supply first before we know how much the coins worth. And why USD ? i think it's only because USD it's like a global currency and commonly used anywhere

If you want to see the volume of transactions in tokens / coins you can visit the exchange where the tokens / coins are traded, if you look at Coinmarketcap it will only be visible in $