Is volume important in trading?

What is volume?

Volume is how much of the coin you're looking at is being traded in the time frame that you select. Most exchanges will show you the volume of the last 24 hours. This is important to know in order to know if you can buy and sell that market easily. It's all about liquidity if you want to day-trade, now for swing trading it's a little different due to the fact you are in the market for a longer amount of time.

Is volume important for you?

This totally depends on the volume you day trade with. Why I say this is because if you trade bigger you need a bigger volume in order to get in and get out. For example if you trade with 1 Bitcoin then I would like to see a volume of about 500 Bitcoin in the 24 hours or higher, now if you trade 5 bitcoin then you want to see more than that 500 Bitcoin volume. The higher the volume the easier it is to get in and get out.

There are exceptions

Some coins are exceptions, don't only look at the 24 hour volume also look at the volume that is on average on the hourly in order to see if the volume only came in for a so called "Pump & Dump" basically a group of people pumped a coin up (they bought in low and pushed it up a bit and the masses followed up in order for it to rise)

Why is volume not as important for Day Trading as it is for Swing Trading

This is because Day Trading is all about going into a coin and a few hours later to go back out with some profit. now for Swing Trading you would be in a coin for a longer time so you need less volume in order to get in and get out, but make sure it still has a healthy volume. Why I say this is because you still want the coin to go up in a few days time right, if there is hardly any volume that often means that the coin doesn't move all that much except for by pumps from people.

Conclusion

The volume that is in a coin is important based on the amount you want to trade with and the trading style you want to use. Remember don't trade too big if the volume of the coin is not high.