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In the world off cryptocurrencies, trading volume is off misunder-stood as simply a reflection of marks sentiment. Howver, it’s so much more that. Trading in volume, particularly its absolute and relative and relative currency, is one off the most cryptocurrence markets. I don’t

What is trading volume?

Trading volume reference to the total number of coins or tokens traded over a specific period, usully 24 homes. The total number of trades executed in this time. In all the words, it doesn’t go to how many time a few bags bught and soil.

Why is Trading Volume Important?

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• Risk Management : Trading volume Helps Managen Risk by providing alarming a benchmark is a fortified loss. Iif a trader cells at an inflated prize (due to high volume) all the Buys back a loter prize, the can minimize potential losing.

• Market sentiment : a decrease in trading volume can indicate a bearish market sentiment, as buters may be decorating their activity.

Type of Trading Volume

• Absolute volume :

• Relative volume (RV) ratio

  

  : A Hearing RV Ratio Indicates Increased Trading Activity.

Key Takeaways from Trading Volume

• The Volume is not affected by market volitility :

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Resist Practices for Using Volume

• Set A Baseline Value : Establishing a benchmark will be the reinforcement system by tracking historical trading volume off the asset you are the teams.

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Conclusion

Cryptocurrency Markets and Making Information Decisions about butce of Assets. By Tracking Absolute and Relative Trading Volume, Traders, Investors, and Analysts Canal Valuable Insights into Market Sentiment, Trends, and Risk Management Strategies. As the crypto currency

Additional Resources

• CoinMarketCap: a comprehensive data base of crypto currency Prices and trading volume.

• CryptoCompare: Real Temper Provides Market Data, including Volumes for Various Assets.

• Tradingview: offers a range off technical indicators, including trading volume charts.