ThirdPrize2 (OP)
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February 06, 2019, 04:05:17 PM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
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AhmadM
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February 06, 2019, 04:49:00 PM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
You have posted on the wrong board, you have to post this kind of thread in Trading Discussion board. You should move this thread as soon as possible or it will be deleted.
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avikz
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February 06, 2019, 06:06:46 PM Merited by LFC_Bitcoin (1) |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
Trading involves both buying and selling. So if someone is selling, there is someone else who is buying as well. That notifies an active currency which is in demand. So being # 1 by volume is great thing for a currency. It means the currency is well circulated within the crypto ecosystem.
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DooMAD
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February 06, 2019, 06:29:21 PM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
Many exchanges seem to fudge their figures in an attempt to look more attractive to traders. Any stats you read about volume should be taken with a pinch of salt. There's also no easy way to discern between users who are buying and selling for profit and users who are buying to keep as an investment or to spend on goods and services. Most exchanges just declare a total volume and don't distinguish between those who withdraws their funds to their own personal wallets versus those who keeps their funds on the exchange in order to day-trade. In short, no one can tell you with any certainty.
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bitmover
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February 06, 2019, 06:47:15 PM |
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So being # 1 by volume is great thing for a currency. It means the currency is well circulated within the crypto ecosystem.
Not exactly. Trading volume may be a good indicator , yes. But it's completely different from transaction volume, which is the true indicator of circulation within the cryptocurrency ecosystem. Trading volume doesn't occur in the Blockchain. It's an off chain data , which occur inside exchanges. Transactions are done in the Blockchain and they indicate the usage and adoption
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HODL2090
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February 06, 2019, 07:42:32 PM |
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Most trades are made by traders buying across various exchanges. This constitutes the trading volume of a currency and also determines the circulation and popularity of a particular currency. It's importance is it's ability to grow a currency and make it more resistant to manipulations
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CoinCollect
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February 06, 2019, 09:10:14 PM |
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Trading volume is important for a coin. If it is high, then the coin is in demand. In this case, the trading volume is more important than the price at which the coin can rise. In addition, the larger the capitalization, the more difficult it is to manage the price of the coin. So trading volumes are very important.
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semobo
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February 06, 2019, 09:22:52 PM |
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Trading volume is important for a coin. If it is high, then the coin is in demand. In this case, the trading volume is more important than the price at which the coin can rise. In addition, the larger the capitalization, the more difficult it is to manage the price of the coin. So trading volumes are very important.
High trading volume is also can be negative as well,if the prices keep falling when the volume is higher because it litreally means people don't want to hold that coin so if you are buying it means you are taking more risk.
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Reid
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February 06, 2019, 10:24:42 PM |
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So could you make your token to be valuable if it will not be bought or sold? Demand and supply. The basic rule in commodities to see the value of each rock , oil or paper.
As for crypto currencies, trading websites are the medium to buy and sell your tokens. So being number means a lot of thing. It aint just because it is being played by traders. It may also be because of a lot of users are buying at that day specially new buyers.
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dothebeats
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February 08, 2019, 09:59:33 AM |
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For exchanges, trading volume is absolutely important knowing how liquid things can go within the platform. Same goes for a particular coin, if traders found out that one particular coin has a high volume, surely they would want to trade it, knowing how easy it is to get in and out of the said market. Mostly volume does not necessarily dictate price, but it gives you a heads up on how fast price changes might be on the said coin that you are eyeing to trade.
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Mister1k
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February 08, 2019, 11:30:40 AM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
Trading involves both buying and selling. So if someone is selling, there is someone else who is buying as well. That notifies an active currency which is in demand. So being # 1 by volume is great thing for a currency. It means the currency is well circulated within the crypto ecosystem. Instead, we need to address him which is better, whether trading or exchange the cryptos for fiat cash. Most of the people just invest, earn and exchange it fiat cash but that is not the right way to increase the fund you have or volume buddy. All you need to do the best trade in top trading sites with decent investment but be careful and read all policies while investing to it.
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Indrawan77
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February 09, 2019, 05:44:56 AM |
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Well it's still great to be number one in trading, its mean that a lot of people interested in trade the coin, in other perspective its mean that the coin got a big potential to become big in the future and if the developer see that the coin is active then I am sure there will be more development
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Kevin77
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February 09, 2019, 08:00:36 PM |
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I don't get whats wrong with it. Being number 1 for buying and selling is exactly what volume is. What else do you think volume should represent ? Being number one is a shot at bitcoin that is for sure but whats wrong with bitcoin being number one because it is the most bought and sold coin out there.
If you think it is there because people use it to buy other coins and sell other coins you are very wrong because there are plenty of exchanges who allow you to do the same with plenty more other coins as well. Hence bitcoins only reason for being so high is not that and also lets not forget that bitcoin always had a higher volume than other coins while most of the top 20 didn't even existed. Hence, there is no point of arguing if bitcoins volume is legit or not.
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Botnake
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February 10, 2019, 07:23:21 AM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
Well everyone is trading and it's good to see be #1 in volume as it guarantees liquidity. Traders can be for short term like day trading and long term as well, everyone of us who owns bitcoin are trading since bitcoin is not yet widely accepted and our only way to enjoy our profit is just to cash it out. From the very start, we are already trading, so it's always good to see the volume increase as that means adoption in any sense.
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adaseb
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February 10, 2019, 08:49:44 AM |
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I think he is referring to the massive volume on Bitmex which are all trading derivatives and you can't deposit or withdraw any fiat.
If I had to guess maybe less than 5% volume is actual people either buying to get into Crypto or add to their wallets and people who are selling Crypto to get out.
A good way is to look at the Coinbase volume which has many retail traders and doesn't have leverage so there are many organic trades there.
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February 10, 2019, 10:28:16 AM |
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when it comes to trading volume, specially when you are using it as a way of comparison you should always consider 2 important things: 1. how much of it is fake. sometimes the exchanges fake the volumes, sometimes the shitcoin pumpers fake volumes by buying and selling to and from themselves. and all that can create a fake total volume.
2. how long that volume was sustained. for example bitcoin always has the highest volume and it stays that way because bitcoin is the only coin that EVERYONE wants but altcoins are only the target for traders who want more profit on their bitcoins. but sometimes when an altcoin is being pumped hard, or gets dumped super hard, we see a gigantic volume rise since a lot of money is being injected in it or being pulled out during the dump. that should not be what you measure because it is temporary and as the altcoin is dumped, the volume drops down to near nothing again.
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davis196
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February 10, 2019, 12:57:29 PM |
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What good is being #1 by volume if it is just people trading on exchanges? By that I mean buying and selling other coins.
The bigger trading volume the higher the price.That's why the shaddy crypto exchanges were faking the trading volume of some shitty altcoins to pump their price and sell them to some naive newbie traders. OP,your question is kinda confusing.It would be great if you are more detailed about what you are asking.
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moynul2050
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February 12, 2019, 01:36:48 AM |
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trading volume is a very important thing. because with so much trading volume for a coin it will make the price of the coin stable, and cause the coin will not die and will not become shitcoin, if the trading volume is small, even though the price of the coin is expensive I think it won't last long
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DooMAD
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February 12, 2019, 01:15:29 PM |
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trading volume is a very important thing. because with so much trading volume for a coin it will make the price of the coin stable, and cause the coin will not die and will not become shitcoin, if the trading volume is small, even though the price of the coin is expensive I think it won't last long
Volume certainly helps, but doesn't necessarily guarantee stability, though. Volume can be amplified by market movements, during both bull runs and price plummets, as speculators look to profit from the shifting prices. Some would argue it's market liquidity that stabilises prices.
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BitBustah
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February 12, 2019, 01:48:07 PM |
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Many exchanges have fake volume (wash trading) and bot trading. Don't be fooled by shitcoins that have high volume that look to be legitimate.
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