How is trading volume calculated for cryptocurrencies?

3 answers

• Dec 18, 2021 · 3 years ago
  Sure! Trading volume for cryptocurrencies is calculated by adding up the total number of coins or tokens that have been traded within a specific time period. This includes both buy and sell orders. The volume is usually measured in terms of the base currency, such as Bitcoin or Ethereum. Factors that can affect trading volume include market demand, liquidity, and the number of participants. It's important to note that trading volume is not the same as market capitalization, which is the total value of all coins or tokens in circulation.
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• Dec 18, 2021 · 3 years ago
  Trading volume for cryptocurrencies is calculated by tracking the number of trades that occur on a particular exchange. Each time a trade is executed, the volume is increased by the size of the trade. For example, if someone buys 10 Bitcoin and someone else sells 5 Bitcoin, the trading volume would increase by 15 Bitcoin. This data is then aggregated over a specific time period, such as 24 hours, to provide a measure of the overall trading activity. It's worth mentioning that trading volume can vary significantly between different exchanges, as each exchange has its own user base and liquidity.
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• Dec 18, 2021 · 3 years ago
  When it comes to trading volume calculation, different exchanges may use slightly different methods. Some exchanges may only consider the volume of completed trades, while others may also include the volume of open orders. Additionally, some exchanges may exclude certain types of trades, such as wash trades or trades with unusually large or small sizes. These variations in calculation methods can result in slightly different trading volume figures across different platforms. At BYDFi, for example, we calculate trading volume by considering both completed trades and open orders, providing a comprehensive view of the market activity.
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