Trading tips: Don’t enter altcoins with very high trading volume

Many people focus on percentage gains/losses, but ignore the importance of trading volume. For altcoins, for example, if a coin’s daily trading volume exceeds 500 million USDT, I usually define it as being at a high-volume level. Of course, there’s no absolute answer to this standard—some people use 100 million, 200 million, or 300 million as the cutoff. The key is to combine it with historical data for observation.
Why don’t I like entering when trading volume is extremely high? Because the bigger the trading volume, the more intense the battle between longs and shorts, and the more obvious the price volatility. At first glance, there seem to be many opportunities, but in reality it’s easiest to get repeatedly swept for losses—your stop-loss level often gets hit just in time, and then price moves back in the original direction.
I’ve suffered this myself. I once went long on an asset with daily trading volume exceeding $1 billion. Even though I was right on direction, the volatility was too brutal—I kept getting stopped out repeatedly and, in the end, I couldn’t actually hold to capture profit.
By contrast, I prefer trading volume in the range of $50 million to $100 million. At this stage, liquidity is sufficient and trading depth is also decent, while volatility hasn’t yet gotten out of control—so it’s easier to execute according to your trading plan. Too low a trading volume can mean a lack of liquidity; too high a trading volume can turn into a fight driven by emotion and capital, which isn’t friendly to most traders.