People interested in trading business have many questions in their minds before they start trading. Well, these questions are valid as well. These traders always look for new ways to invest and earn high outcomes. Thus, when it comes to traders, the crypto market is something that attracts them the most. Now the question that raises is, what is their attraction towards crypto? The answer is that traders always want to invest in new businesses with good output and the crypto market provides it.
Moreover, these traders always want to invest in a business that never stops, just like previously, some businesses shut down during covid. So, the crypto market is an online market that never stops; thus, these points attract traders. Traders can’t start crypto directly; they require a medium for crypto. Hence, for this, the platform named “KuCoin” comes in. KuCoin is a popular crypto broker with almost billions of users. It is available in 200+ countries, offering crypto services in different currencies like Bitcoin, doge usdt, ETH and many more. Isn’t it so cool?
We have discussed traders and crypto, but the point to raise is what trading volume is. So, let’s explore it first!
What is trading volume?
Trading volume matters a lot for the trader; it is considered the overall share numbers traded in a specific period for security. This trading volume is regarded as the technical term in a business on which investors believe a lot as it shows the security of market activity and helps investors decide whether to invest. Or in which currency they show you invest or not.
Now the question will be the high or low trading volume. So the answer to the newbie investors is that no line can divide the trading volume. Still, it is mostly said that the volume that crosses the trade security and no of investments to 500 shares in a day is referred to as the high crypto market trading volume, whereas volume below 500 is low crypto volume.
What does the average trading volume of crypto mean?
Talking about the average trade volume indirectly means referring to the specific stock/currently shared investment daily.
The investors’ are thus mostly used to calculate the average volume before investing.
For calculation, the overall trade volumes at a specific time are recorded and take out the answer by dividing the total number of days in that time frame.
However, all these points will go out of your head if you are a newbie investor. So, here we have come up with an example that will clear you on what exactly the trading volume is ?
Trading volume example
Let’s take an example of a trader who bought the stock. ABC has almost 500 shares of ABC while it has another product “XYZ”, with 250 shares and has sold it.
On the other hand, another investor sells 500 shades of ABC and buys XYZ 250 shares from the first trader. Hence this is so-called the trading volume, where the total volume will be approximately 750 shares.
Can we distinguish between the volume as buying or selling?
The answer will be that yes, you distinguish; all you have to check is whether the stock is buying and selling happens on the price of bidding or at the price of asking. Investors mostly get notified.
Trading volume and the investors of crypto trading strategies
The trading volume is really important, but regarding trading strategies, there needs to be a proper strategy for the crypto people. All you need is to always have a close eye on the market first, and if the number of the investment and people’s interest, along with the increase in the share price, means it is the right time to invest.
Trading volume and its effect on the crypto world
Trading volume has a natural impact on cryptocurrency. They are directly proportional to each other where when trading volume increases, the price increases and hence shows the people interested, and people invest more.
However, when the trading volume decreases, it indirectly reflects people’s lack of interest and demand, and sellers’ selling price needs to meet the potential buyers.
Conclusion
Thus, volume is important for the cryptocurrency from a price perspective, and the change in trading volume affects the crypto market. Hence, investors always look into the trading volume before investing; however, if the trading volume goes well enough, the investors contact crypto brokers like KuCoin, who have been serving such investors on currencies such as ethw usdt for years.
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