What Is Crypto Trading Volume? (Beginner Level)

Crypto trading volume shows how much of a cryptocurrency was traded during a certain time. High trading volume means strong activity; low trading volume means weak participation.

When price rises on high trading volume, it usually signals genuine buying pressure. When price rises on low trading volume, it may mean the move is weak.
Crypto trading volume helps you see whether a trend has strength or not.

Understanding Crypto Trading Volume (Intermediate Level)

Traders use crypto trading volume to confirm price action.
If price and trading volume move together, it confirms the trend.
If they diverge, it warns of exhaustion.

Intermediate traders compare daily crypto trading volume with historical averages. They also check how trading volume behaves during breakouts.
If a breakout happens on low trading volume, it might fail. If it happens on high trading volume, it’s often sustainable.

Advanced Use of Crypto Trading Volume

Advanced traders combine crypto trading volume with Open Interest and liquidation data.
When trading volume increases with rising Open Interest, it confirms that new money enters the market.
When trading volume rises but Open Interest drops, it could mean shorts are covering or longs are closing — a possible reversal signal.

Analyzing crypto trading volume across different exchanges also shows where major activity happens and where liquidity concentrates.

Summary

Crypto trading volume measures market activity and confirms price strength.
Beginners should focus on spotting high and low trading volume periods.
Intermediate traders use trading volume to verify breakouts and trend continuation.
Advanced traders merge trading volume with Open Interest and liquidation data for deeper insight.
Mastering crypto trading volume helps you understand the heartbeat of the market.