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Ben “BitBoy Crypto” Armstrong’s Take on Why Volume Matters in Crypto Trading

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More famously known as BitBoy Crypto, Ben Armstrong is one of the most successful crypto influencers on YouTube. He’s also the creator of BitBoyCrypto.com, a website dedicated to educating readers about cryptocurrency news and price analysis. 

He started his journey in the world of cryptocurrency in 2012. Ben was already interested in Bitcoin when it burst into the picture in 2009, but it took him three years to start investing. His first venture didn’t work in his favor as he lost his Bitcoin holdings in the infamous Mt. Gox hack. Despite losing his hard-earned money, Ben decided to move on and focus on honing his knowledge and skills. Today, he puts all his attention, work, and energy into teaching others how to get started in the crypto industry. 

One of his most popular videos is about trading volume and why it’s such a critical metric. He states that trading volume can influence a significant flow of money and interest gains. Here are some of his takes on why all investors should look at the importance when investing. 

High Trading Volume 

When talking about high trading volume, it means that there’s a significant amount of money flowing into an asset. According to Ben, high trading volumes show that more people are either doing asset trading or investing money into the acquisition. It is also an excellent indicator to gauge general interest in particular coins.

Volume trading can be usually interpreted by looking at bottom vertical bars on price charts. You solve them by reading the height of those bars and comparing them against each other to show the volume’s activity regarding the other points in the asset’s price timeline. There are exchange data aggregators such as CoinMarketCap to view the overall asset trading volume numbers, as they noticeably fluctuate regularly. 

Altcoins Volume 

Volume is also relevant when it comes to trading altcoins. A low daily work could be a sign that a coin only has a few buyers. As a result, you might find it challenging to unload a powerful position if you’re holding that particular coin. Therefore, it’s generally less risky to invest in coins with higher trading volumes since you can buy or sell more quickly, given that more investors are engaged in trading those coins.

Dramatic Price Movements 

Low volume in the price charts can indicate that the market is vulnerable to significant changes in price. Ben suggests thin order books to be a primary culprit. If the day to day Bitcoin volume trading is low, this could mean that only a few orders are available at its current price, failing to meet the needs of a buyer or seller looking to move a multiple positions. 

Finally, Ben reminds his viewers that no foolproof system exists in the crypto market. It’s not surprising to see false signals when trying to analyze price movements. But through experience, investors can learn the importance of examining multiple time frames and using several indicators in developing a personal trading system that best works for them.


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