The total amount of a cryptocurrency that was traded during a certain period of time.
Trading volume can help an investor identify momentum in security and confirm a trend. If trading volume increases, prices generally move in the same direction. That is, if a security is continuing higher in an uptrend, the volume of the security should also increase and vice versa.
For example, suppose company ABC's stock increased in price by 10% over the past month. An investor is interested in the company and wants to purchase 1,000 shares. They conduct a fundamental analysis of the company and see that its earnings and revenues have consistently increased over the past year. However, the investor is not confident the stock will continue in this uptrend and is worried that the trend may reverse.