Is Trading Volume an important metric ?

[ije07]

We can see the trading volume in the market in the order book status that occurs in the market and the order depth is not too large, the token project has a good trading volume and you can also see the trading volume within 1 week or 1 month so that's how you can see how much large trading volume on the project so you are even more confident when you want to enter a new project.

[Jackl87]

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 ?

I don't think that trading volume is the most important factor. The most important ones for a new project for me are the team, the roadmap, the use-case of the project and also the tokenomics. The trading volume is also not that unimportant though. When you are exclusively talking about very new projects like projects that have just launched on that day, then i think most of those projects will have a decent volume if they were able to create a minimum of awareness and interest for their token.
Projects that are on the market for a little longer but still very small can be different though. There are a lot of projects out there that have trading volumes of a few hundred dollars a day. This is a very bad sign in my opinion and i would not invest in such projects because they are almost dead and a id size sell or buy order would probably mess up the price.

[Rigon]

How do you check the "order books" ? I'm only using CoinGecko here
Trying to decide whether Celsius is a good buy or not

Coingecko is a means of viewing a price volume market cap etc. You can easily see all the details of all the coins that are listed here.It is used by many and is a very popular site. Here you can add portfolio of all your coins.

[Rigon]

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 ?

The coin that you will invest while investing will be invested only after seeing the market volume and popularity within 24 hours.If the trading volume is low in 24 hours, you should take a break from that coin, check it carefully and then invest.The coins that have the highest trading volume are the ones that you will put in the first stage for investment.

[nicedreams]

Trading volume isn't the only important metric when it comes to researching a coin, to see how it's doing. For example, if a new coin list on the exchange, its trading volume will be low. If the market was in a bear season like it was today, its trading volume will also be lower than it was before.

[Teraboy]

It could be deciding metric but then again that if it isn't manipulated.
As you might figured out, so many shitcoins actually manipulating their trading volume so that they didn't get delisted from an exchange.
Sometimes shitcoins are also manipulating the trading volume to give off this kind of illusion that their shitcoin are famous.
So basically sometimes trading volume could be an irrelevant metric instead if it's truly fabricated.

[nurilham]

For me, yes.
I will prefer to choose trading coins that have higher trading volume than those lower enough. Low trading volume may have smaller chance to rise up although it may grow higher by processs. But, it is too risky, isn't it?
if we are trading, the high differences between order book buy and order sell will also determine the volume.
But, this is not the only one to consider, it is one of the elements or aspects that I am considering when analysing the amrket. Moroeve rif the coins are for long term holding.

[SistaFista]

High trading volume doesn't guarantee that the coin is good.
There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.

[Silberman]

High trading volume doesn't guarantee that the coin is good.
There are some people manipulates the trading volume by wash trading (buy and sell it on several exchanges).
With that way, their coin seems like having a good volume on the market. So, it is not a very important metric i guess.

If it was not an important metric then those exchanges will not take the time to fake it at all, what we need to do is to find exchanges which do not fake that data or at least find a way to filter that information, it is not easy but it is something that we must do as the volume of a coin is an incredibly important metric, as it tell us how much money is moving in that coin every single day, and if the amount is too low then it is important to stay away from it, as it becomes way easier to manipulate the price of that coin.

[LUCKMCFLY]

For me, the volume is the metric that speaks about the market, the only one that you have to know how to interpret and have clarity according to the volume, of course I have always thought that the volume in crypto cannot give us all the necessary information because the volume is not consolidated , so the volume that we handle has a lot to do with what is required of each eexchange, so to give us an idea we always look for the exchanges that handle the highest volume, such as Binance, bitfinex, kraken, among others, I think all this influences to give us an better information and not see it as a way of gambling, for me this is the most important metric of all.

[fosco333]

It is one of important metric i think, but not the most important because some exchanges can manipulate their trading volume.
Even decentralized exchanges volume can be manipulated by wash trading their own coin, buy and sell repeatedly.
We should look for another aspects other than trading volume to measure the project quality.

[asyakashi]

High volume can not determine whether the project is good or not. Because volume can also change rapidly as the number of trades passes. What determines it is if the large volume lasts long enough I think it's a lot of investing there, but if it suddenly rises and drops suddenly, it looks like someone is buying or selling madly, like flash pumps and flash dumps.

[SaveOurSea]

I think reading trading volume is very important, because I realized that recently,
I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator

[Silberman]

I think reading trading volume is very important, because I realized that recently,
I tried to trade by understanding the volume indicator, and the result was 70% successful,
that coins that are experiencing an increase in volume are likely to increase in price too, so this is why I love this indicator

If someone is using technical analysis then they need to use the volume to improve their trading strategy, after all while there are a lot of indicators out there the price at any period only has 5 characteristics, open, low, high, close and volume, by excluding volume from your strategy you are already missing 20% of the information the market is giving you so it is expected that your trading system will never be as good as it could be.

[popeye95]

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 ?

Yes it is, in order for you to see if the team is just manipulating the market or just using bot to increase the price you should compare the trading volume to order books. I have an experienced before in one of my asset, team uses bot so they can tweak the price even though the reality it is just them buying and selling the token, if the team continues to do like this it is just means they only have a few investors and traders.

A lot of projects did this, using bots to push a certain price range for their coin or making the fake volume so investors thought they can have the liquidation at a certain price. This is why trading volume is the most important metric when people want to invest and also why there are people keen on providing fake volume.

[Samurai trieng]

I think one of the factors that influence the success of a trading or investment is to see or read the trading volume, because most coins that experience an increase in sales volume in the market will most likely experience an increase, and it is very rare to see coins that do not have large sales volumes. will experience an increase in price, which is why it is very important before starting to invest to read the sales volume.

[LUCKMCFLY]

Honestly, for me, the volume of operations can be important if it is reflected in the chart of the currency in question, I can have thousands of operations and this can be done as a well-known exchange, they use many bots making purchases of 1 dollar and it is enough to make a "fictitious" volume that obviously will not be reflected in the total volume, apart from the fact that it is not consolidated, it is more difficult to predict accordingly, another thing is the volume of the chart, according to that volume if it seems to me that it is like a coin or action speaks but if and only if when you know how to interpret.

[virasisog]

Trading volume has a huge impact on the success of the project. It simply means that it is active on the market and lots of investors trust the whole project. It could increase the volatility of a coin which will also be profitable for most traders. Nowadays, fake volume is also existing for some developers to hype the project so we must be skeptical and careful. It's still important to do research first.

[Faisal2202]

Yeah, trading volume depends on short term investment, but if you are investing for long-term, than volume varies from month to month, like for now days, volume of alts is much lesser than three months volume, and your were asking that, when people sell things than volume also increases but the dominance of respective alt decreases, so basically dominance is the most important thing than volume

[I_Am_Chamara]

Trading volume is important to notice down Rugg pull projects