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Cryptocurrency Trading Volume and Trading Pairs
Trading volume in fiat market in general is the amount of a security traded within last 24 hours. In crypto market, where the term securities is replaced by tokens, i.e. the amount of token traded, which includes trade in and trade out both, in last 24 hours. The time frame of 24 hours is used by all the exchanges to publish their trading volumes for any of the tokens. For example, at the time of writing, Bitcoin volume traded at Binance was $180.86 million, at Okex was $1191.91 million and in total including other exchanges, was $1.11 billion. You can see the current trading volume at Cryptoz.ai. If we see large amount of volumes and prices, then it means that the trend is supported by many, and the prices might keep going up, while if at low price low volumes are observed, it might infer that only a few back the trend.
Trading volume can be considered most important metric in crypto currency market because slicing and dicing might lead to multiple sub metrics that might help understand the trend to a limited but useful extent. For example, trading volume for a currency in last 24 hours can be compared to that of last 7 days / 1 month, a low trading volume might indicate a change in crypto which might be unsupported, or considering a coin with frequent heavy movements that would not attract attention if it has high volume whereas a coin which generally have low volume, but it’s 24 hour volume increases, meaning a lot of transactions are being made, the coin policies or product backing it up might have pivoted for the better, thus gaining a lot of support. At Cryptoz.ai you can easily navigate through the different aggregated pre defined time scales for you which rage from 24 hour to all data from beginning with a granularity of daily, weekly, monthly or yearly data, thus making it easy for you to compare the volumes.
Trading pairs are another interesting metric that is used by crypto market analysts to lay down how strong a crypto is in comparison with other crypto currencies or fiat currencies. Trading pair generally written as crypto/crypto or crypto/fiat defines the price of a token if traded for in another token or a fiat currency. For example, BTC/ETH defines the price of BTC in ETH market, or simply put how much ETH you will get if you sell 1 BTC, or a BTC/USD defines the price of BTC in USD market i.e. price of BTC in US dollars. The volume of a specific trading pair defines that more tokens from first crypto token is moving to second crypto token. Might be a reason but not surely, that the second crypto is a form of liquidity that is much more stable than any of the other tokens, generally Bitcoin, litecoin and Etherium are used as the liquidity. You can easily watch for all trading pairs for individual crypto currencies, along with how the crypto is doing against all crypto market and all fiat market here.
Generally crypto market is much more volatile than the fiat market, and volumes are themselves a proof of it, they also provide as a great metric for crypto market analysis, and prove to be useful if not accurate metric.