Plain English
Trading volume is the total dollar value of an asset that traded hands over a window. 24-hour volume is the standard chart number. High volume = active interest, easy to enter and exit. Low volume = thin market, hard to size in or out without moving the price.
How it actually works
Volume is reported per pair, per exchange, and as an aggregate across all venues. Aggregators sometimes inflate it (wash trading on smaller exchanges has been an industry problem); always check whether the volume is on Tier 1 venues (Coinbase, Kraken, Binance, top DEXes) before trusting the number.
What it means for you
Use volume to size correctly. A token doing $5M/day in volume can absorb a $50K order without slippage but will move significantly on $500K. A reasonable rule for entries: do not be more than 1–2% of daily volume in a single trade if you care about your fill price. Spread larger entries across days or use OTC.
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Educational content only. Not investment, tax, or legal advice.