How to check the trading volume in the currency circle

With the rapid development of the digital currency market, more and more people are beginning to get involved in currency transactions. For new traders, understanding the market’s trading volume will help them make more informed trading decisions. This article will introduce some methods to help readers determine the transaction volume in the currency circle.

Understand the importance of market trading volume

In currency trading, trading volume is a very important indicator, which represents the level of activity in the market. High trading volume usually means that the market is highly liquid, with more traders and relatively small price fluctuations. Conversely, low trading volume means the market is illiquid and prices are more volatile.

View trading platform data

Most mainstream digital currency trading platforms will publicly display transaction volume data. By visiting the exchange’s official website or using the exchange’s trading APP, users can easily check the trading volume of each digital currency.

The trading volume display of the trading platform is usually divided into two indicators: 24-hour trading volume and 30-day trading volume. For beginners, you can start by looking at the 24-hour trading volume. Higher 24-hour trading volume usually means that the corresponding digital currency is more popular and active.

Observe Market Depth

Market Depth is another indicator that can determine market trading volume. The market depth chart displays the current number of buy and sell orders. You can understand market liquidity by looking at market depth.

When the market depth is relatively large, that is, when the volume of buy and sell orders is large, it means that market transactions are active and liquidity is good. On the contrary, if the market depth is small, that is, the number of buy and sell orders is small, it means that the market liquidity is poor.

Use third-party data websites

In addition to the data provided by the trading platform itself, you can also use third-party data websites to obtain more comprehensive transaction volume information. Some well-known third-party data websites, such as CoinMarketCap, CoinGecko, etc., can provide more transaction volume data of digital currencies.

Through these third-party data websites, users can compare the trading volumes of different trading platforms and the trading volumes of different digital currencies to gain a more comprehensive understanding of market activity.

Study the market’s historical data

In addition to observing the current trading volume, you can also understand the market’s trading volume trends by studying the market’s historical data.

By viewing the trading volume data in the past period, users can observe whether the market's trading volume is stable and whether there is an obvious upward or downward trend. This helps users better judge market activity and predict future trends.

Refer to the opinions of professional analysts

In the currency circle, there are many professional analysts who will give predictions and suggestions based on market trading volume and other indicators. You can learn about their opinions and judgments by reading relevant currency circle information or following the game strategies of professional analysts.

Although the predictions of these professional analysts are not necessarily accurate, by listening to their opinions, you can enhance your knowledge and understanding of the market.

Combined multiple indicators for comprehensive judgment

When judging the transaction volume of the currency circle, multiple indicators need to be considered comprehensively, not just limited to transaction volume data. Some other related indicators, such as market value, market share, holdings, etc., are also important indicators to understand market activity.

By combining the analysis of multiple indicators, the market activity and trading volume can be judged more accurately.

Summary:

Understanding the trading volume of the currency circle is very important for investors. By viewing trading platform data, observing market depth, using third-party data websites, studying historical data, referring to the opinions of professional analysts, and combined with the analysis of other related indicators, we can better judge the trading volume of the currency circle and make decisions. Smarter investment decisions.

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