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• What is Volume

• What is Volatility

• What is Liquidity

• How Volume and Volatility make Price Move in Cryptocurrency

• Why Cryptocurrency can move more pip in a day than FOREX

• How to Read Volume Bars

*Volume and Volatility

What is Volume & Volatility?

Volume: Refers to the quantity of an asset that is being traded.

Volatility: Refers to an increase or decrease in price value.

The price of a Cryptocurrency can change rapidly when there is an imbalance of orders however, even if there is a high volume a balanced order book will result in low volatility.

Each exchange will have different levels of volume and you may notice price differences.

There needs to be liquidity so that trades may be executed in any market!

In Summary: Markets Participants around the world contribute to Price Movement. If there is low liquidity, orders may not be filled and just because there is a high amount of volume does not always result in high volatility!