Crypto Trading Volume Explained

When tracking crypto trading volume, the total amount of coins bought and sold over a specific period, trading volume, you’ll also run into market orders, immediate trades executed at the best available price and limit orders, instructions to buy or sell only when a certain price is reached. Both order types live inside the order book, a real‑time list of all pending buy and sell orders for a market, which directly shapes the volume you see on charts. In simpler terms, more orders mean higher volume, and higher volume usually means tighter spreads and better liquidity for traders.

Why Volume Matters for Every Trader

High crypto trading volume signals that a market is active and that price moves are less likely to be artificial. When the order book is deep, big trades can happen without ripping the price apart, which reduces slippage. Low volume, on the other hand, can make price spikes look exaggerated and increase risk. Volume also helps confirm trends: a breakout with low volume might be a false alarm, but the same move with strong volume often means the market truly respects the new level. By watching how market orders flood the book and how limit orders line up at key price points, you get a clearer picture of where supply and demand sit. This insight feeds into decisions about entry points, stop‑loss placement, and position sizing.

AlertLend gives you real‑time alerts that flag volume spikes, sudden order‑book imbalances, and liquidity squeezes so you can act fast. Pair those alerts with charts that overlay volume bars on price candles, and you can spot when large players are entering or exiting a position. Some traders use volume‑weighted average price (VWAP) as a reference level, while others set alerts for when a token’s 24‑hour volume crosses a predefined threshold. The articles below dive into the mechanics of market and limit orders, explain how to read an order book, and show you practical ways to turn volume data into actionable strategies.