How does crypto exchanges generate trading volume?

[Min George]

We often hear that a particular crypto exchange has a certain trade volume. Crypto exchanges are sometimes rated and regarded based on their trading volumes. But how do they generate these trading volumes?

And why do they really need to generate trading volumes desperately?

 

[Suba]

Trading volume is the number of transactions of a crypto (eg BNB) in a certain period (daily/24 hours or monthly). From the volume traders can measure market activity and trader interest in a crypto. Volume also depends on trading pairs, market conditions and time. So Volume is collected from trading activity on all centralized and decentralized exchanges.

 

[uptrendfinancialsignal]

This isn't difficult at all. The trading volume represents the number of transactions they have successfully carried out. That tells on their reputation as it's often recorded in percentage. I always go for someone with reasonable percentages to exchange with.

 

[SilverLance]

They may need to generate trading volumes in order to attract more users and investors to their platform.