The price of Bitcoin and other leading cryptocurrencies are rising continuously year after year as these digital assets are increasingly being accepted by institutional and retail investors. This tremendous rise in prices is also making the volume of trading in cryptocurrencies soar. The trend keeps going up as new investors keep pouring in on a regular basis.
Just 1-year back, the price of each BTC was hovering around US$10,500 with a market capitalization of around US$200 billion. However, currently, the price of each BTC is hovering around US$48,000 with a market cap of around US$900 billion. The 24h trading volume has also maintained a level above US$25 billion for more than a year now. In fact, the BTC trading volume reached over US$125 billion in mid-May 2021.
These figures are a matter of envy for the trading volume of listed leading companies such as General Electric Company (GE). It got listed in 1962 with an average of around 5.6 million shares per day average volume. It traded below US$2 billion volume for many months and only started to climb in late November 2021.
When it comes to cryptocurrency trading, it is the cryptic exchanges that are the main beneficiaries of high volumes of trades. This is because they accumulate profit by earning trading fees for every transaction. However, there are a handful of cryptocurrency exchanges and trading apps that are showing inflated figures of volume to lure more crypto trading customers. However, currently, there is an effort to correct the volume of crypto trade in all the Bitcoin exchanges.
It is important to know more about bitcoin trading volume so that you can use it to your advantage. Let me walk you through some of the most important concepts and a wide array of aspects related to BTC trading volume and their importance.
Trading volume indicates the direction and movement of an asset price. It can be used to make future price and demand predictions of Bitcoin (BTC) or other cryptourrencies.
One of the most important data used by crypto traders is the 24-hour volume indicator. It helps cryptocurrency traders to determine the future profitability of cryptos. If you want to determine the future profitability of cryptos, knowing the volume can be extremely important.
In fact, the higher the trading volume, the more the cryptocurrency exchanges can earn on the crypto trades offered on their platforms. When crypto transactions lead to higher volumes, the prices of BTC and other cryptocurrencies get fairer. It becomes easier to get rid of the chances associated with distorted pricing.
If the volume of a crypto exchange is low, it signals that either the trades are low or inefficient trades. This also leads to increasing cases of the sellers failing to match the bids of potential bitcoin buyers.
In layman’s terms, trading volume can be compared with the concept of liquidity. Though they are not the same, an analogy can be drawn between the two to understand, especially if you are a beginner.
A direct correlation can be found between the volume of bitcoin transactions and the liquidity of the bitcoin market. If the BTC trading volume is high, the liquidity of BTC will also be higher.
If the trading volume of a particular cryptocurrency is low then it’ll create amazing arbitrage opportunities for investors. In such a market condition, you can buy crypto, day, BTC, at a lower price on one cryptocurrency exchange and sell it at a higher price on another crypto exchange.
If the demand for a cryptocurrency falls then this type of arbitrage opportunity arises. It can also arise if there is something wrong with the operational features of the exchange.
The 24-hour trading volume of a cryptocurrency, say, Bitcoin, shows how much of the crypto coin has been traded (bought and sold) over a period of one day or 24 hours.
24h volume is a very important indicator because it signals the normal rate of movement of a coin. The higher the volume, it is easier for you to get a seller for your bid price. By analyzing the 24h volume of a cryptocurrency, you can predict the probable price movements of the coin in the short run or within the day.
Crypto trading volumes matter because they help in:
Trading volume matters because they are considered a precursor to a big price movement in BTC prices.
If you are ready to invest in stocks and cryptos or buy Bitcoins through online brokerage accounts of centralized or decentralized cryptocurrency exchanges, you can do so in a legit way by investing through stock investing and cryptocurrency apps. You have to open an account with such an exchange or online broker (including trading apps and invest apps such as TD Ameritrade). Then verify your details (including basic personal information) and fund your stock or cryptocurrency trading account.
The best thing about the Bitcoin and crypto market is that the transactions are done without the involvement of banking entities. This is one of the reasons why more and more investors (including corporates, venture capitals, and institutional investors) are heavily investing in cryptos.
You can start depositing funds to your stock or crypto exchange account to buy company shares or cryptocurrencies. This can be done by simply connecting your online banking account (savings accounts, checking accounts, or other account types). Besides transferring fiat currency money online through bank transfer, you can make payments with other payment methods including credit cards, debit cards, and others.
If you need further assistance, you may consider taking help from the vibrant and helpful trading communities. You can trade cryptos with credit cards (business credit cards, personal ones, or citi custom cash cards), debit cards, or other payment options through reliable crypto trading web platforms.
You can also check the savings calculator to know how much you should save on a weekly, monthly, or yearly basis. Check the financial news to know more about the prospects of various assets so that you can build long term wealth.
In case you are bullish on the future prospects of gold, stock and ETF trading, crypto market, Bitcoin BTC, Ethereum ETH, Bitcoin Cash BCH, Litecoin LTC, Ethereum Classic ETC, Bitcoin SV, Wrap Bitcoin, and other altcoins, you can start investing in stocks, gold, Bitcoin, and other altcoins with USD. Once bought, transfer them to:
Hold them for a longer time period to let the Bitcoin BTC price increase. Keep your cryptocurrencies safe with:
Crypto market investing will provide you a higher return in the long run. The ROI from crypto investment is much more than investing in:
In fact, many retirement funds or IRA accounts such as Roth IRAs are allowing digital currency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets. These retirement funds are increasing investor choice by allowing them to invest a small percentage of their money in cryptocurrencies. This is, in turn, increasing the prospects of these funds to provide their investors to get higher returns. If you are thinking about building wealth, you should include cryptos in your portfolio like other crypto investors.
Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. Start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in crypto market and make better financial decisions. Learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly.
As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and other crypto APIs. There are many brokers suitable for beginners as well. So, read reviews of customers before joining a crypto exchange. There are many brokers for beginners in the USA through which you can trade and invest extra cash and investible fund in fractional shares and stocks funds.
You should definitely learn about:
Defi tokens and NFTs (Non Fungible Tokens) are the next generations of crypto coins. These decentralized coins have started to become very popular among active traders who trade cryptocurrency. You can buy sell them through crypto trading platforms too.
Whether you buy Ethereum ETH or buy Dogecoin, you should also invest in:
To diversify your portfolio, you may also buy stocks through stock brokers for beginners and pro.
Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors, investment managers, and wealth managers, especially the ones who are not averse to cryptocurrencies such as Bitcoin and others.
While day trading, you should always try to invest only that much money which you can afford to lose. When you do margin trading, be very careful. Financial protection must be there in your mind always while you make cryptocurrency trades. That’s why having a secure financial plan is so important.
Invest money in stocks, gold, and other cryptocurrencies through centralized or decentralized exchanges and reliable online brokers.
Trading Robots (such as NapBots.com) automatically scans the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.
NapBots.com is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.
The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.
You may also check “Napbots Review - Simple Way To Increase Your Crypto Returns” before taking the plunge.
NapBots crypto trading software is special because it comes with:
NapBots is easy to start with. It involves just 3 steps:
Step #1: Connect to one of the available trust exchanges.
Step #2: Select from the unique list of performing Bots of NapBots
Step #3: Choose a plan that suits your investment style
Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!