What does increasing trading volume means to traders?

[slaman29]

Agree Binance UI is the worst in the world, and it got even worse as years pass. Too many options. If I was new I wouldn't stay on it.

I hope they will do something with it in the future, though, I don't think they see the need in it being one of the biggest fellas in town

Don't count on them doing it, it's been years since it got cluttered. And it gets MORE confusing every year not less.

You right, they're the biggest fellas but you know, if they're not careful people will leave them. Look at all the big guys like Bittrex that never improved and also got bigger and more confusing. Eventually people left them for other better and more user friendly platforms.

Loyalty is to a point

[mirakal]

I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increase 3061% or so in 15 minutes.

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

A higher volume means higher volatility, which is a good chance to earn more profit. And the reason it means a lot to me and to others is because it was very convenient to trade in a particular coin that was moving fast. But of course, manipulated volume is something we need to look at, and it can be a trap. That is why we don't just consider the volume when choosing what coin to trade but also the reputation of the site. Scam projects are very well known for such a strategy, and many traders fall into the situation, making them suffer losses instead of making some. A good way to do this is to not rush and do some research. And most of all, consider some trading tools to improve trading decisions. 

[Zigabel]

I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increase 3061% or so in 15 minutes.

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

This is such a very rare case, even if it's futures trading or perpetual trading as different exchanges do call it, that percentage is almost not achievable within such period of time, as a matter of fact I've not experienced such in all my years of trading experience which has spammed over three years, addressing your question, yes traders do take advantage of market trading volumes to make more profit as it also helps volatility.

If trading volume spikes within a short period of time, it means there are a good number of traders at that time trading that asset and that will increase volatility on that asset, taking it in ta particular direction exponentially so if you are trading in same direction, you make good money otherwise you loose huge funds.

[shawonngp]

You must be using Binance buddy

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

I am fan of binance exchange but i am not limited with one exchange, i am used mostly old exchanges binance,okx,kucoin,gateio,bitget,mexc and bybit but binance is my favorite one of them. Bybit is also especial to me for some reasons like i am using it to participating different events, i am quite to use mexc it's now suspicious for listing shit coins.

[Cryptogamist]

Increasing trading volume in crypto typically indicates higher market activity, better liquidity, stronger price trends, and more trading opportunities. I get my own notifications on my phone from Xypher.io who provide them and you can filter them how you like. Been trading with the alerts for a good 2 years, its really great once you get the hang of it.

[justdimin]

I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increase 3061% or so in 15 minutes.

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

A lot of people will say it means a lot, and a lot of people will say that it means nothing at all, this is why we can't get a straight answer for any of this. The main reason for this is that people who end up saying it means a lot, are people (traders) who end up using it to determine something, on their calculations the volume is used and that is why for them it means something and they put a lot of emphasis on it, whereas if we end up with traders who do not use the volume at all then they are not going to end up saying it means anything at all, they are not going to care at all.

We should consider this to be an ignorant period and we can't really care about it, we can't make any type of bigger impact on this situation. But over the time, when more people take a similar decision in trading then market will fly. I assume people are getting ready for a bullish year and the reason for gathering is obviously the recent halving.

[Bitsgap_traders]

The high volume increases volatility, but you should also take a look at the OI as it affects the coin.

Most of the crypto has a fake volume, which means that market makers use their algorithms to provide liquidity to their clients.


You can use volatility as an indicator that the coin is active in the market. Such fluctuations can be exploited by trading bots, like grid bots, to capitalize on significant price movements.

Additionally, rising volatility in a flat market can signal an impending surge in the coin’s value. For instance, if trading volume jumps from 500k to 1 million while the market remains stable, it could indicate that a substantial price movement is on the horizon.

Start learning this in simple terms and don't overload your trading system.  

[Lakai01]

Increasing trading volume in crypto typically indicates higher market activity, better liquidity, stronger price trends, and more trading opportunities.
[...]

"better liquidity" and "stronger price trends" is not true in my opinion.
A sharp increase in volume may indicate that the assets traded on the exchange (e.g. BTC) are more restricted in terms of availability. This is of course unrealistic for larger coins, but it is certainly relevant for coins with a small total market cap.

Stronger price trends also have nothing to do with this, and may even be the opposite. You only have to look at the extremely high BTH trading activity in the 2017 bull run, where the asset jumped 20% to 30% up and down ... and that within very short time frames.

[shield132]

Thanks for the replies. Immediately I saw the notification, bitcoin has started to increase if you check the last 45 minutes using the 15 minutes candles. But I will just not prefer to put it into consideration to analyse the market price of a coin. But it can be one of the subordinates. The crypto market generally now is bearish and not good for long position. Although the RSI was low at the time and the price of bitcoin has significantly gone more than the lower BB. If you use the 1 hour candles, you will see what I am talking about.

Isn't it unusual to see 3061% in 15 minutes? It seems that someone sold or bought lots of Bitcoins. Increased trading volume means increased interest in either buying or selling. For example, when there is a FUD and Bitcoin crashes, trading volume is very high because everyone tries to sell it while others find it as a good opportunity to buy. Trading volume is also high when something significantly positive happens like ETF adoption.
Btw you can also have a look at the long/short ratio, buyers/takers ratio, options and some other information that's provided by exchanges but to be fair, I don't care about that statistics. I always try to look at charts (1 Day, 1 week, 1 month) and always be up to date about the current situation in the crypto world.