Here's what I noticed observing the crypto market — the trading volume of cryptocurrencies is one of the most underestimated indicators that traders rely on. Many beginners only look at the price, but that's a mistake.

Trading volume shows how much of an asset was bought and sold over a certain period. It could be an hour, a day, or a week. The higher this indicator, the more interest there is in the asset and the more liquid the market is.

Why is this important? A high trading volume of cryptocurrencies means you can quickly buy or sell the desired amount of coins without significantly impacting the price. If the volume is low, even a small large trade can shift the price. This is critical for active traders and large investors.

When I analyze charts, volume helps me confirm the trend direction. If the price is rising and volume is increasing along with it, that’s a sign of sustainable demand. If volume drops while the price moves, the trend may weaken. A sharp spike in volume often precedes a reversal or the start of a new trend.

In practice, it looks like this. The leaders in trading volume for cryptocurrencies are Bitcoin, Ethereum, and stablecoins. USDT holds a huge volume — about $70 billion per day. BTC and ETH are also leaders, although their volumes are smaller. Interestingly, recently meme coins like DOGE, PEPE, and SHIB have been attracting serious volumes. DOGE regularly shows volumes in the tens of millions.

Altcoins like Solana, XRP, BNB, Avalanche, and Chainlink also have decent trading volumes. This indicates there is demand for them and they are sufficiently liquid for entering and exiting positions.

Each cryptocurrency exchange shows the volume for each trading pair. You can look at the volume in a specific cryptocurrency or in fiat currency. There are also aggregators that collect volumes for one coin across all exchanges — providing a complete picture of the market.

That’s why, when choosing an exchange, you should pay attention to the trading volumes of the cryptocurrencies you plan to trade. High volume means better conditions for entry and exit, minimal slippage, and fairer prices. This is especially important if you work with large sums or frequently open and close positions.