Trading volume is the core of survival. The truth behind 90% of retail investors being repeatedly cut: they don’t understand trading volume at all! As a practitioner for ten years, today I will use the shortest time to explain this core indicator that determines life and death. Remember, it is more important than the K-line and is the key to avoiding 99% of traps.

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Trading volume:

real-time electrocardiogram of the market ​. 10 million-level trading volume: represents real capital flow, market makers are active, bankers may be present, and there is a safety line for buying and selling with counterparties ​. Below 1 million: zombie coin warning! Liquidity is exhausted, it is easy to buy and difficult to sell, and there is no market for every minute, and it is likely to return to zero in the end ​

The iron rule for retail investors:

Don’t touch coins with a trading volume below 10 million! ​Speaking with data: ​Tens of millions, with an average daily flow of hundreds of thousands of real funds, and even extreme market conditions can stop losses in time. Analogous to a busy market, no worries about buyers. Millions: The dealer ran away early, leaving only robots to brush orders, and the takeover is trapped. Analogous to a deserted alley, no one responds to dumping goods.

Tricks to quickly judge liquidity. Look at the authoritative platform: Coingecko/CMC's "real trading volume", small platform data are mostly brushed. indicating that the liquidity is extremely poor and it is easy to be smashed by large orders. Advanced usage: trading volume + 3 indicators to capture potential coins.

On-chain data:

large transfer frequency and contract interaction volume reflect real user activity. Community popularity: Twitter/Telegram discussion volume, Attention to potential buying vane , Market maker movement: The change of holdings of the top ten addresses follows the smart money. Finally, a reminder that the currency circle is not about who earns more, but who lives longer. Pay attention to the trading volume, just put a safety bolt on yourself. Want to say goodbye to the fate of leeks?