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Author Topic: Help me understand volume  (Read 69 times)
bardio808
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June 24, 2018, 05:54:41 AM
 #1

I just checked the top gainers in the last 24 hours and found this:
https://am3pap002files.storage.live.com/y4pHac09uy8s1Vs5vunHWbZzgOLYoxQTuE8Dkzmn2FZt3mDlVzmyaq_H4S0NpA32GM96zqzgcCVrvm3ccFPRgrUThYclTFJcC7OnFsD2agtwzqceDjLOeca9nziCOSFHOxaPl6ZfU7UDY_x1ZsQN-FUqgU6QkUo_QVlJi6krh1htZHsQwP5ybHkSuvsj0iqPEdy/Screen%20Shot%202018-06-24%20at%207.39.15.png?psid=1&width=2336&height=766

BelugaPay gained 166% in 24h with almost 2M USD market cap by a volume of 704 USD.
How?
Probably i don't understand what volume is and how it is calculated.
I'd be pleased if someone could shed a light on this.
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June 24, 2018, 06:17:32 AM
 #2

Trading volume is  just the total amount of buy/sell orders for one particular coin.
The altcoins you are talking about are most likely pumped by someone(probably their investors/devs).
They just create a lot of buying orders at higher prices and this makes the other traders to believe that there`s an increased demand for those coins.Other traders start buying and the snowball effect creates a speculation bubble.

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bardio808
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June 24, 2018, 06:30:30 AM
 #3

That's OK but what is volume exactly? If only 704 USD traded in 24 hours over a 2M USD cap then how can it pump the value of the coin by more than 1.5x?
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June 24, 2018, 07:25:31 AM
 #4

That's OK but what is volume exactly? If only 704 USD traded in 24 hours over a 2M USD cap then how can it pump the value of the coin by more than 1.5x?

Because the pump that is being shown here is for 24 hours only. When we say volume has risen by 166% for 24 hours then it is in regards to a day before prices. The graph tells us that one day before this pump occurred the volume was down to 166%. The initial value was less than 166% than the current volume.

Its easy to pump that high because the value of the coin is already very less, plus the market of 2 M is almost nothing and can be manipulated with tiny factions like 700 bucks here.

Also, the circulating supply is very low here. This means with 700 bucks more demand was created while supply being less it pumped lot.

 
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bardio808
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June 24, 2018, 07:45:04 AM
 #5

That's OK but what is volume exactly? If only 704 USD traded in 24 hours over a 2M USD cap then how can it pump the value of the coin by more than 1.5x?

Because the pump that is being shown here is for 24 hours only. When we say volume has risen by 166% for 24 hours then it is in regards to a day before prices. The graph tells us that one day before this pump occurred the volume was down to 166%. The initial value was less than 166% than the current volume.

Its easy to pump that high because the value of the coin is already very less, plus the market of 2 M is almost nothing and can be manipulated with tiny factions like 700 bucks here.

Also, the circulating supply is very low here. This means with 700 bucks more demand was created while supply being less it pumped lot.

Thanks for the detailed explanation and sorry to say that but i still don't completely get it. At 1.000.000 USD market cap how a 700 USD difference can pump the price by 166% and the market cap to 2.000.000? I know market capitalization is not market depth but even then it seems way off to me.
And that 700 USD is not even neccessarily buys but it sums the amount of the entire circulation, right? Like 350 sells and 350 buys?
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June 24, 2018, 08:03:54 AM
 #6

Trading volume is  just the total amount of buy/sell orders for one particular coin.
The altcoins you are talking about are most likely pumped by someone(probably their investors/devs).
They just create a lot of buying orders at higher prices and this makes the other traders to believe that there`s an increased demand for those coins.Other traders start buying and the snowball effect creates a speculation bubble.
A scoop strategy for excellent traders that amasses great amount of speculatora and hype them with an example then introduce them to their channels. These unfairness are for rich people it's designed for rich people who ca  hustle their way through this struggle.
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June 24, 2018, 11:11:18 AM
 #7

most likely, just the developers (or who there are reserves of this coin) start trading in small amounts and buy and sell to themselves. Chasing coins back and forth. Thereby creating activity and increasing the volume of trading.

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June 24, 2018, 02:52:21 PM
 #8

The trade volume is simply the amount of a particular cryptocurrency that is transaction a particular exchange per day/week/month etc. This is the reason why exchanges have different trade volumes, particular as the largest exchanges have the highest volume simply due to having a higher number of users. The total volume of any coin is the amount transacted across all exchanges.
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June 24, 2018, 04:49:04 PM
 #9

Many coins decrease or increase the value while trading. But you have to keep the target that the value of coins increases. That's why you have to make the previous quench first.
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July 03, 2018, 04:08:46 PM
 #10

Most likely the data just has not yet been updated. Try to check the volume of trading a little later, or look at the exchanges which really volume traded.

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July 03, 2018, 04:20:26 PM
 #11

Obviously no trading volume, price has the freedom to flow through the orderbook more easily.. its why pump and dumps will absolutely screw you, because the people who create them are selling to the followers that are joining them in participating in the pump and dump.. once the volume dries up and the price is crashing, without any new buyers the price will plummet..  But likewise large volume can also be fake.. wash trading or market makers (especially competing ones) can make the coin to appear like its being accumulating but its just several bots competing against eachother.  This is why in technical analysis.. you don't buy one specific indicator.. you need confirmation from other things to pair with volume to see if you are getting mixed signals.

So just to re-iterate..

Low volume coins move price very easily because the orderbooks and interest are thin.
Large volume can be easier to get out of large positions (or buy large positions without moving price) but volume can be faked by wash trading and market maker bots to pad the volume to give a false sense of accumulation.  Verify with other indicators if volume is giving mixed signals.

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July 03, 2018, 05:44:30 PM
 #12

It is the number of orders. They are pumping it too much making the price soar.
If you see a larger amount in 24 hours volume but have a lower percentage or rise then it might be because the selling order is higher than the buyers.
It could go billions and yet it wont move because of too much sellers lurking around. So to manipulate the market you really need a lot of money.

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