Crypto exchange volume is among the primary metrics traders and investors look at as far it concerns the decision making.
It helps to draw conclusions on whether to buy or sell a cryptocurrency and this is why someone needs to be familiar with that indicator.
In fact, crypto exchange volume shows the amount of money that has been traded in a specific period of time.
The time frame usually is 24 hours and the amount is measured in dollars.
As you might suspect this kind of information can be useful in a lot of aspects.
You should always keep in mind that crypto exchange volume is just another piece of the puzzle and it will not help you much if you don’t use it together with other metrics like market cap, liquidity, circulating supply etc.
What is volume in crypto exchange?
In today’s world, cryptocurrency markets are between the most popular places that traders and investors choose to make profit.
Everyday, people from around the globe transfer billions of dollars in transactions which take place in crypto exchange platforms.
Crypto exchange volume is the indicator used to calculate the value of those transactions.
Almost always is measured on a 24 hours basis and the most common currency used are the American dollars.
It makes sense for investors to know in which exchanges there is the largest crypto exchange volume but also it is helpful to look at the volume size of each individual crypto coin.
And this happens because we can draw valuable conclusions from both of them.
Crypto exchange volume by exchange platforms
The trading ratio that happens in every crypto exchange platform helps investors to find a variety of answers.
- First of all, the bigger the volume is the more liquidity offered for traders and investors.The more liquidity results in quickly and cost-effectively conversion of crypto assets in fiat money.On the other hand, less liquidity might mean transacting in Bitcoin or in cash will have a cost or irritating delays.
- Afterwards, high trading volume translated into more reliable and safest transactions.The fact that traders and investors choose to conduct millions or even billions of transactions in certain platforms indicates that those platforms offer a high level of reliability and safety.To put it in another way, those exchanges have already been tested and proved to be good.
- High crypto exchange transactions translated to more popular platforms.The benefits of popularity usually mean high customer services, like 24 hours support, education in trading procedures and more.
- Platforms offering high volume in transactions are suitable for some of the most interesting trading strategies: Scalping and day trading strategy. You are recommended to read more about those two strategies by clicking here for scalping and here for day trading strategy.
Crypto exchange volume by cryptocurrency
Investors and traders keep their eyes on this metric for several reasons:
- Is very intuitive to know which cryptocurrencies enjoy the highest trading volume because those coins tend to be the most profitable.
- Some crypto assets may have big prices, or seem to have a big margin of profit but investors don’t choose to exchange them as much as others.
Subsequently, you might not want to get involved with coins like that, because there is a possibility for a catch in the long term that you don’t know exists yet.
- Finally, there is a chance to choose an exchange platform that has high crypto exchange volume but the targeted digital coin will have low volume in this exchange and very big on another. So you might decide to move on another platform that best suits your needs.
As you can understand, crypto exchange volume can help you come to a variety of useful conclusions, some of them are listed above.
Highest volume crypto exchanges
In the day that this post is written (which is the 23th of March), the list with the top three crypto exchanges goes like that:
- Binance (with 24h trading volume at $15,134,218,247)
Binance sits in the number one position and it doesn’t look like it’s going anywhere in the close future.
- Hotcoin Global (with 24h trading volume at $8,820,792,368)
Hotcoin Global is an australian based cryptocurrency exchange which launched in 2017 ,
- Mandala Exchange (with 24h trading volume at $8,614,235,031)
This specific platform claims to have the deepest liquidity pool and at the same time investors enjoy a high level of safety.
The above are only 3 from the total of 306 that are available at this moment.
You can take a look by yourself in the full list provided by Coinmarketcap.
Highest volume cryptocurrencies
Last but not least, it would be interesting to take a look at top three cryptocurrencies by trading volume:
- Tether (USDT) (with 3 months average trading volume at $57,84 billions)
Tether or else USDT never stops surprising us. This is a token hosted in Ethereum, Bitcoin and other blockchains. Its price is always close to 1 dollar because its purpose is to mirror the dollar’s value.
- Bitcoin (with 3 months average trading volume at 26,74 billions)
From this point further the list has no surprises. I believe you don’t need further information for it. Of course Bitcoin was expected to be on that list.
- Ethereum (with 3 months average trading volume at 14,65 billions)
Ethereum is the second most popular cryptocurrency and is standing in the list right below Bitcoin.
You can explore alone the exchange volume of other cryptocurrencies in finance.yahoo.com.
The bottom line
Crypto exchange volume is a necessary metric to watch if you want to be successful in the cryptocurrency environment.
However, you should also keep in mind that it is just a piece of the puzzle and that’s how you are recommended to use it.
Image source: Quoteinspector
