Is Trading Volume an important metric ?

[super bako]

Transaction volume is the most important aspect besides price. Even for many other technical indicators, the volume of transactions can serve as confirmation or rejection of a given hypothesis. Along with circulating supply and market cap, transaction volume is one of the most prominent metrics in crypto assets. on the other hand Coins with frequent price movements will not attract attention if they have high volume. If a coin typically has less volume but traded quite large in the last 24 hours, then that indicates there is support behind the movement in question.?

[sulendra12]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

It's important, but make sure to take a look at supply and demand on certain coins. Sure it has big trading volume, but if the order book is empty on either side of market(supply and demand), then what is the point of trading. This kind of thing once occurs with trading bots or when there is an event going on that certain coin. We can't just rely on one metric on trading.

[Hypnosis00]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

It's important, but make sure to take a look at supply and demand on certain coins. Sure it has big trading volume, but if the order book is empty on either side of market(supply and demand), then what is the point of trading. This kind of thing once occurs with trading bots or when there is an event going on that certain coin. We can't just rely on one metric on trading.

Supply and demand reflect their price movement. The higher demand, the higher in price but to say there is a high trading volume, it means that there is a fast-moving activity in the market, particularly with that project and this certainly means a lot, and somehow emphasizes that people still making money from this.
I put this one consideration as I've to join trading. A sort of market basis to which project I am going to use upon trading and I say it works, really.

[jrrsparkles]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

Trading volume can't be a deciding factor because its is easy for an exchange to increase the volume of particular coin or token by faking the trade orders and also there is a term for this which is wash trading, before investing in a project you need to start with the fundamental analysis then start looking the trading volume and all.

[asriloni]

It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.

[mumang siat]

It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.

It's true what you said, that volume is important enough to run a certain coin, altcoin liquidity can be seen by trading volume, but market capitalization is something that is also very much needed, and in my opinion both are quite needed to see the development of a coin, without all that, then coins are difficult to achieve new ATH, because both are needed for the development of an existing coin

[Dave1]

It certainly is important although market capitalization and the roadmaps added with the overall progression of the project is a lot more important.
You definitely could judge how liquid the market of an altcoin is by simply looking at the trading volume but if it's already beyond 1 mill I guess it's better if you take a look into the overall market capitalization and the development of an altcoins instead, since that's gonna be the ones that decide if a project gonna hits its highest ATH or just gonna go down instead.

Yes, but it's not the only metrics that we need to look up. There are a lot that can really influence or at least a indicator where the price will be going.

Top 10 altcoins are liquid already, but the question is the rest because some of them are being used for pump and dump, artificially increasing the trading volume. While others, there are no movement at all.

[Silberman]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

Trading volume can't be a deciding factor because its is easy for an exchange to increase the volume of particular coin or token by faking the trade orders and also there is a term for this which is wash trading, before investing in a project you need to start with the fundamental analysis then start looking the trading volume and all.

It is true that exchanges can try to fake the volume of certain coins, however just because this happens it is not really an excuse to completely disregard the trading volume as an important metric, in fact it is incredibly important, as if you see that a movement is starting out but there is not an increase in the volume behind it, then you know that it has very little chances of succeeding and it will eventually fail and the price will go back close to its starting point.

[Psynthax]

Honestly trading volume hardly could affect the price movement in most of the altcoins but enough sign that this altcoins is famous for the majority of holders.
Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.

[wheelz1200]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

If there is NO volume it shows no interest in the project.  You could have a coin with a high price but no movement in volume you can probably expect a drop in price.  I think volume is a key factor when looking for trade opportunities.

[serjent05]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ?

I think the buy order is more important than just the trading volume.  Buy order shows how much is the demand for that project.  Volume can be cheated through wash trading but buy orders can't be cheated.

But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

That is why it is better to check the buy order if the demand support for the project is strong.

[WeedGoW]

Honestly trading volume hardly could affect the price movement in most of the altcoins but enough sign that this altcoins is famous for the majority of holders.
Trading volume as far as I know, could keeps your altcoins from getting delisted and could support your altcoins or your favourite altcoins to be listed in various exchanges since the trading volume is quite high.

It does affect if a coin with a low trading volume jumps up in price like 10x or something, it was super risky for any new investors looking to buy the coin since they could fall for a pump run. Delist doesn't matter since if your coin got delisted, it would be a bad press for that coin. More chance for dev of that coin creating some fake trading volume to keep their coin list on that exchange.

[dlightag]

As a new project that just listed less than a weak with much trading value, I mean liquidity, it means really have to make a research about the if it's real or bot is trading to make the trading a high impact in trading volume (liquidaty) and also check the trading history and pending order on exchange for better understanding.

[lalabotax]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ?

Yes, a higher trading volume means that more people are holding and trading the coins. It means that the chance to rise up may be much better. More importantly, this coin may have long survived in the market.

But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

No offense, when this happens, all coins will also experience the same, crash price. if more people are selling panic, the price can crash more easily. But this doesn't relate too much to the trading volume.
On the other hand, if it only has very small or no trading volume, it means no hope for the future of this coin, will be dead soon project probably

[Cryptoababe]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

Trading volume doesn't really mean a project is good to invest on because there are a lot a fake volumes out there on pump and dump projects.
So.. As a project get stronger or have more use case or get popular, the volume will increase.

[Yamifoud]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

Trading volume doesn't really mean a project is good to invest on because there are a lot a fake volumes out there on pump and dump projects.
So.. As a project get stronger or have more use case or get popular, the volume will increase.

Yes, you are right but it was a big contribution when choosing a coin to trade. Well, of course, you have to check the background of the project if the said volume was faked or something real. Perhaps, this is not just the only basis we check, and to see their consistency could prove their legitimacy like the top listed coins. Choosing known projects together with reliable and trusted exchanges helps us to recognize if these projects are worth trading or not.

[Wildwest]

Usually the trading volume is a sign that the projects we participate in can develop if the volume is large, and this we have often found in potential coins that are always increasing all the time in volume, but there are also some projects that do create fake scenarios so that investors are interested in participating in the project but at the end it is just a joke that makes big losses, then in addition to the matrix we must also look at the performance of the team that manages a project.

[TastyChillySauce00]

This is the most important metric although sometime this can be manipulated easily when it comes from the whales and centralized exchange site. The main concern is when people are looking for the good token or coin and they will always be seeing the trading volume as the most important thing.
Token will have very high volatility caused by low liquidity even some may be trapped caused by the liquidity was not enough for him to sell his token to the exchange site.
This is the main thing that must be used by anyone before try to invest in the crypto

[Pelana vreo]

When you trade on the exchange, some orders seem to move quickly, this is due to the volume of trading using bots, I believe investors choose coins with large trading volumes, it is chosen to do scalping, some investors who are already familiar with crypto will saw the trading volume and they placed several large orders.

[Moeda]

How important is trading volume when trying to decide whether to invest in a new project ? The higher the better ? But if people are "selling off" like crazy wouldn't that also mean a high trading volume ?

Trading volume is the result of buying and selling in an exchange, of course if all of them sell will make the volume increase. But we look not only based on trading volume, but also the level of price stability in an exchange.