Cryptocurrency has become increasingly popular in the past decade, and trading volume and turnover have become increasingly important to crypto exchanges. But what do these two terms mean and why are they important?
Trading volume is the total amount of trades executed in a given period of time, and turnover is the total value of those trades. Trading volume and turnover are important because they indicate the liquidity of a crypto exchange. If an exchange has high trading volume and turnover, it is more likely to have more buyers and sellers, and therefore more liquidity.
However, it is important to note that trading volume and turnover do not always correlate with the price of cryptocurrencies on the exchange. For example, an exchange may have high trading volume and turnover but still have low prices. This could be because the exchange is not as popular or as trusted as other exchanges.
I am interested to hear from experienced traders who can explain why trading volume and turnover are important on crypto exchanges, and what other factors influence the price of cryptocurrencies.
Trading volume is the total amount of trades executed in a given period of time, and turnover is the total value of those trades. Trading volume and turnover are important because they indicate the liquidity of a crypto exchange. If an exchange has high trading volume and turnover, it is more likely to have more buyers and sellers, and therefore more liquidity.
However, it is important to note that trading volume and turnover do not always correlate with the price of cryptocurrencies on the exchange. For example, an exchange may have high trading volume and turnover but still have low prices. This could be because the exchange is not as popular or as trusted as other exchanges.
I am interested to hear from experienced traders who can explain why trading volume and turnover are important on crypto exchanges, and what other factors influence the price of cryptocurrencies.