The emergence of cryptocurrency in 2009 was a turning point for the whole financial world. Even though it did not get immense popularity right away, it was seen as the concept, that would provide people with a bunch of capabilities and convenience.
At first, Bitcoin was the only crypto that existed. Its price was very low and did not reach heights until 2017. From time to time, other cryptocurrencies started to appear, such as Ethereum, Litecoin, Bitcoin Cash, and they have become active tools in trading.
However, there are some complications when it comes to determining the crypto volume. The general image sometimes is not correct and other details are not taken into account. In this article, we will discuss why crypto volume is actually bigger than we can imagine.
Volume and crypto exchanges
The information which we receive about the volume of cryptos mainly comes from crypto exchanges. There are hundreds of them in the world, but other methods of exchanging cryptos are not considered. The volume, in general, is an indicator that shows us how much crypto is traded around the world.
When it comes to crypto trading, One of the main differences between trading cryptocurrencies directly on a crypto exchange and doing so via crypto CFDs is the ability to use leverage with CFDs. In order to understand what CFDs really are, we should define it as agreements between a trader and a brokerage company. In this regard, CFDs provide great assistance to the traders and are essential when it comes to volume.
As has already been mentioned above, there are plenty of crypto exchanges in the world. Crypto exchange in simple words is like a stock market where cryptos are traded. Sometimes it isn’t easy to collect information and verify them so that the same transaction does not count twice. It requires a thorough analysis and effort.
However, other methods, such as depositing money from one cold wallet to another one, or buying things with crypto are not counted in the crypto volume. Basically, the data, that we have from the crypto exchanges is regarded as the general image of the whole crypto world, which in essence is not really accurate. Analysts tend to ignore other factors, so we are left with the feeling, that crypto volume is more than we can imagine.
The dark web, also known as Darknet, is the hidden part of the Internet where criminal and illegitimate activities take place. Considering the speed, anonymity, and convenience of cryptocurrencies, people frequently use them as the payment method, so that they can conceal their illegal activities. Of course, it is hard to keep track of all crypto that is spent on the dark market, but it counts also.
Crypto volume is huge but it is still not the exact amount we are provided with. Various indicators are not considered, which are essential for getting the real image of cryptos traded and used in the financial world.
Natalia Revishvili is a professional financial content writer and editor with extensive experience in technical analysis and the Forex market. Over the past few years, she has been successfully trading on Forex using the trends, support, resistance, and technical formations. Now Natalia, apart from trading Forex for living and being technical analysts for financial websites, is a happy owner of two dogs traveling round the world.
Disclaimer: This is a paid article. KryptoMoney does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. KryptoMoney is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the article.