Trading Volume Is the Heartbeat of the Market – Understand It, and You'll Truly Get Started in Crypto

Almost eight years ago, I entered the crypto market with over 2,000 USDT saved up. At that time, I knew almost nothing: opening the chart, I only saw blinking green and red candles, my heart pounding with each price increase and decrease, feeling both excited and anxious. Eight years have passed, and I have experienced all kinds of cycles: hot rallies, sharp crashes, prolonged sideways movements. My account is now in a completely different position, but more importantly, my trading mindset has also changed entirely. Looking back, I realize a very simple truth: the longest-surviving person in crypto is not the one who makes the most quick money, but the one who maintains discipline and understands the flow of money. This article does not talk about “x100 trades,” nor does it promise quick wealth. I want to share some practical principles around trading volume – something many newcomers overlook, but which is the foundation of all sustainable trends.

1. Don’t Just Look at Price – Look at Volume Most newcomers only focus on the price: Price rises = excitementPrice drops = panic But price is just the result, while trading volume is the cause. Price increases but volume decreases → weak upward momentum, easily a false rallyPrice drops with high volume → genuine selling pressure, market is unloading A reliable trend must be confirmed by volume. Without active money flow, all breakouts are suspicious. Since combining price and volume analysis, I’ve almost eliminated the habit of buying at the top and selling at the bottom.
2. Rapid Rise Then Slow Decline – Could Be Accumulation Phase When prices rise very quickly and then gradually correct, most will be scared and rush to exit. But in many cases, that’s actually a phase where large money quietly accumulates. Conversely, the most dangerous signals are: Sudden surge in volume coupled with a strong bearish candleThat’s often a sign of distribution, not a healthy correction. A rule I’ve derived after many years: Fast decline – slow rise usually appears in a healthy marketFast rise – slow decline often signals a weakening market
3. After a Flash Crash, Don’t Rush to Catch the Bottom Strong crashes in a short time always trigger the instinct to “catch the bottom.” But in reality, many people lose money because they act too hastily. A slight rebound after a crash: Is not necessarily the bottomIt could just be a retracement to sell off remaining holdings The true bottom needs time to confirm: Gradual decrease in volumeFollowed by a rebound with volume returning My strategy is: 👉 Not to try to buy at the lowest point, only to take the middle part – the clear trend segment.
4. Decreasing Volume at High Levels Is a Very Bad Sign When prices are high but volume is dwindling, it’s an extremely dangerous sign. The market is like a crowded room: Sudden silence → something is about to happen Many see “price still rising” and become complacent, but in reality: Low volume = lack of new moneyJust one strong sell-off can cause prices to drop very quickly Conversely, high volume doesn’t always mean good. Large volume indicates dispute, not necessarily trend continuation.
5. A Day of Volume Surge Is Not the Bottom Many people see a day of strong volume increase and immediately conclude “the bottom is in.” This is a common mistake. The bottom: Does not appear in a single dayIt forms through accumulation, sideways movement, multiple tests The market needs time to: Eliminate weak investorsRe-establish consensus The bottom is something confirmed, not something to guess.
6. Genuine Trading Is Crowd Psychology Trading Candles are just images; volume truly reflects the market’s real emotions. Volume spikes during panicVolume spikes during euphoria But the most dangerous time is: Sudden volume depletionMarket losing direction In such phases, standing aside and observing is often the wisest choice.
7. The Highest Realm of Trading Is “Nothing” No greed, no fear, no rush. Dare to stay out when there’s no signalDare to enter when the probability favorsDare to cut losses when the scenario is wrong The winner is not the one who reacts fastest, but the one who waits for the right moment. How I Trade Now Start small: always enter small trades to test the scenarioConfirm before increasing positionOnly cut losses if suspicion arisesWithdraw profits when substantial, let the rest run freely This approach isn’t glamorous, but it helps me sleep well and my account grows steadily. Conclusion Crypto is full of opportunities. The rarest qualities are patience and discipline. When you understand volume, grasp crowd psychology, and know how to wait, you’ve already surpassed most retail investors. Slow down to see more clearly. Once stable, profits will come naturally. Continuous learning is the highest-yielding investment.