Volume is an active trading amount that occurs from a particular coin. For example, if BTC has $100 million in trading volume, and the price of $10,000 means that there are about 10,000 BTC is being actively traded.
Overall, the larger the volume, the better. It is for the coin because the coin will be easy to buy and sell. When the coin has a low volume, then the coinvestor must wait longer to sell and it is likely it will be difficult to find the buyer at the market price at that time.
So coinvestors have to keep the coin longer in the market to get the desired price or reduce the cost for it to be sold more quickly.
The volume as a metric is a great way to know whether a coin is healthy or not because the volume shows an interest in audiences towards the coin as well as market liquidity around the coin. For example, if this means that the coin is increasingly popular and also increasingly liquid, it has the potential to be a good investment.
But strategies such as wash trading can also create fake volumes and are very difficult to see unless Coinvestor has a very strong understanding of the history of the market and its statistics.
Professional traders may be able to see manipulation tricks like this and they will have trouble finding them on coins that are widely manipulated by bots and whales.
Moreover, for large coins, the manipulations can be hidden in normal volumes. So, for coins like Bitcoin, it would be very easy to hide volume manipulation from on altcoins that have much smaller volumes
