Volume is the truth behind the market: why Crypto Veterans pay attention to this indicator.

Many newbies look at the Candlestick Chart, while crypto veterans focus on Trading Volume. Why? Because Trading Volume reflects the true intentions of market participants and cannot be deceived.

What Does Trading Volume Indicate

High Trading Volume = Strong Market Consensus

When the daily trading volume of BTC/USDT exceeds 2 billion USD, it indicates that there are many participants with a consensus - either collectively bullish or collectively bearish. During such times, price movements are more likely to continue.

Conversely, a rebound with weak trading volume is often a false breakout. Divergence between volume and price is a dangerous signal.

Trading Volume Maps Liquidity

Want to quickly buy or sell a coin without crashing the market? Then you need to find trading pairs with high Trading Volume. Take BTC/USDT as an example, the Trading Volume of this popular trading pair can reach several billion dollars, with deep liquidity; while obscure trading pairs can be fully filled with just tens of millions.

Who is Creating Trading Volume

Traditional “Three-Horse Carriage”:

• BTC, ETH, USDT/USDC: Cornerstone liquidity, average daily trading volume in the hundreds of billions.
• Meme Legion: DOGE recently surpassed $400 million in daily trading volume, with PEPE and SHIB following closely, as retail FOMO sentiment is at an all-time high.
• Layer1 Newbies: SOL, BNB, XRP, ADA take turns in the spotlight; whoever has the trend has the volume.

It is worth noting that the rankings are not fixed. A previously unpopular coin from last week might jump into the top 20 this week due to some favorable news.

How to Make Money with Trading Volume

Finding Bottom Signals： Prices are falling but trading volume is weak → a bottom is about to form. Institutions may be quietly accumulating, and when the volume surges, it will be the opportunity to get on board.

Confirm Trend Reversal： A sudden increase in trading volume usually indicates the start of a new market trend. If the price rises accompanied by increased volume, then this upward trend has a foundation; conversely, an increase in price without volume will eventually be pushed back to the origin.

Avoiding Risks: When selecting trading pairs, prioritize those with high trading volume. Small slippage and controllable risk are especially important when making large transactions.

Practical Suggestions

• Look at the Trading Volume ranking of the coin, don't just focus on the price.
• Both volume and price must rise together to indicate a true trend; looking at price alone can be misleading.
• Even if obscure coins are cheap, you must be cautious; poor liquidity can make it hard for you to sell.

In simple terms: Trading Volume is the pulse of the market; a strong pulse allows the market to go far.