What is trading volume and how does it affect the price?

Trading volume is a measure of the number of assets that have been bought and sold over a specific period of time. In the cryptocurrency world, this parameter serves as an important indicator of market liquidity and activity. The higher the trading volume, the easier it is to execute trades without significantly affecting the price. With high volume, price stability is often observed, while low volume can lead to stronger fluctuations. Significant changes in volume can predict trends, signaling the start of an asset's price increase or decrease.