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Market basics

How to read volume, volatility and market capitalisation

A price without context can be misleading. Combine several metrics to understand a market's size and movement.

Market cap indicates size

Market capitalisation is generally calculated as price multiplied by circulating supply. It helps compare assets, but does not tell you how much could actually be bought or sold at the current price.

Volume indicates activity

Trading volume describes how much was traded over a period. Higher volume can make a price move more robust, but reported volume can vary across data providers and exchanges.

Volatility shows movement, not direction

Volatility measures how much a price varies. High volatility means larger potential moves in either direction and should inform position size, time horizon and risk limits.

Important risk information

Crypto assets can fluctuate significantly in value. Check information across multiple sources and make decisions based on your own financial situation and risk tolerance.

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