Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
Volume couldn't fake If any token has no liquidity. But for low or no liquidity, your investment could gone after sometimes. During the IEO is running in low volume exchange, funds rised but when listed for no liquidity, eventually price wiill plummet. Your funds isn't safe in any project with no liquidity. 
Topic: Alts with no liquidity on exchanges (Read 720 times)
Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
The answer is no. They simply use fake volumes on exchanges and pump and dump to attract interest from those who want to risk to make money from it. Especially in the current bad market situation, it is very risky to buy and hold altcoins. yes most of the tokens are fake, there are even some exchanges with large volumes that are also fake.
so I started to doubt the newly released token in cmc because the data is not necessarily accurate.
but for coins like btc, eth and other top ranks no different.
some altcoin tradiing volume if compared with buy or sell order was not suitable with reality. most of exchanges provide fake tradiing volume, and maybe its happen when cryptocurrency price hit on all time high on 2017. people interested when they see suddenly cryptocurrency price rise extremely in market. but for major altcoin ,its not significant. so I started to doubt the newly released token in cmc because the data is not necessarily accurate.
but for coins like btc, eth and other top ranks no different.
Yes, it definitely means that 90 percent of all exchanges are doing wash trading by selling and buying crypto currencies on their own. If you look at the charts, even big exchanges are doing so to seem more powerful.
yes most of the tokens are fake, there are even some exchanges with large volumes that are also fake.
so I started to doubt the newly released token in cmc because the data is not necessarily accurate.
but for coins like btc, eth and other top ranks no different.
so I started to doubt the newly released token in cmc because the data is not necessarily accurate.
but for coins like btc, eth and other top ranks no different.
Any Altcoin without liquidity is as good as nothing and most are generated through IEOs so it's best to regulate the market and end these projects without real team and use cases.
I don't really even know what could altcoins with no volume could do, like if we want decentralization then do we want the team to be involved too much on the token or the coin? I mean if you are an investor, you want your coin you invested to be more decentralized and you want the team to take their hands out of your coin after a while.
I could invest and help fund a coin but then I want the team to build something amazing and leave it be, if the team doesn't leave it be then whats the point of a coin that constantly gets new builds from a team that basically could change the coin however they want? Think about bitcoin that way, what if satoshi kept on changing bitcoin constantly? Do you think people would like that? So, when a coin has no volume at all, maybe its time for it to die slowly instead of hoping the team to do something about it.
I could invest and help fund a coin but then I want the team to build something amazing and leave it be, if the team doesn't leave it be then whats the point of a coin that constantly gets new builds from a team that basically could change the coin however they want? Think about bitcoin that way, what if satoshi kept on changing bitcoin constantly? Do you think people would like that? So, when a coin has no volume at all, maybe its time for it to die slowly instead of hoping the team to do something about it.
Probably not the wisest move to invest in coins with little no liquidity. One exception may be for newer coins with both low volume and low liquidity, as perhaps as time goes on both will pick up. But if you see high volume + low liquidity, you know the numbers are faked. The sad thing is that even for 'good' coins we see a lot of wash trading.
This market is unregulated. Rumors spread very easily. Unfortunately, fraud is very easy. However, as a community, if we talk about them here, we can prevent them. Coinmarketcap has become a monopoly. There's an alternative system. Easy to manipulate a single place!
Without liquidity, I think it's not worth investing in this token. altcoin has no liquidity on the exchanges. This is unfortunate. 
Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
Yes, you need to see their real liquidity, to appreciate that coin. If a coin has a large community as well as many investors interested in it, it will have great liquidity. On the contrary, it is just fake volume to attract traders to buy that coin.
Currently, Alts has no liquidity on the exchanges. I think this token is not worth investing in. That's it, almost everything is fake.
According to Investopedia [1]
So for me, I wouldn't invest in those kinds of tokens, especially when the volume is fake.
convert to cash depends how much capital is, if we use high capital, the liquidity is a mustQuote
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.
To make sure we are all on the exact page. Anyway, most traders want to trade coins that are liquid so that it could be easily converted and be sold in almost an instant so they could profit quickly. When it comes to different kinds of tokens, there are a lot which has no liquidity at all, so would you still trade it? You might lose your investment with one trade. I doubt someone would want to do that to himself. So for me, I wouldn't invest in those kinds of tokens, especially when the volume is fake.
if using low capital, low liquidity isnt a problem as long as still having liquidity (not no liquidity at all)
so, i think it is subjective, in other word, there is chance to get profit for traders/ investors
we have to consider that most of low liquid coin is pump and dump so can get big return if we have good strategy.
Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
I agree with your topic. I have seen a few coins that do not have any trade. It is doing good volume here. So the exchange saw no trade.
no.. very dangerous if investing alt liquidity on exchanges, there are lots of good alt listed on the popular and trusted list. I guarantee alt liquidity on exchanges is a scam I have found even though large volumes, but it is only manipulation to dance traders and investors
Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
Coins or tokens that don't have liquidity, I think are not good investments. In my opinion, one indicator of an investment is said to be safe is to have a large liquidity and is also actively traded in the market.
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Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
I don't think it's worth investing in coins or tokens that don't have liquidity because too many fake transactions are made to fool investors so don't get fooled and if you choose to invest, choose tokens that already have big names and are in large exchanges.I often read coins with the same typical type on the telegram channel, and most of them refer to coingecko. after I check, the coin gets stuck at the highest price, or even immediately falls in less than a day. liquidity is very important or we are suddenly forced to become confused holders.
With liquidity, it becomes easier to trade and use indicators when trading for better possibility of gaining profit. Many alts have poor liquidity simple because there are little or no buy orders for the coins. Its not a smart idea to buy these coins but if you are one for taking risks, then by all means, go ahead and bag some. I have seen rare situations where coins with low liquidity moon over a period of time
the question that needs to be asked is whether the indicator really displays pure volume? so if you want to use an indicator you need to know the purity of the volume inside. there is no harm in using the most important indicator you can find out the indicator really displays the original volume
With liquidity, it becomes easier to trade and use indicators when trading for better possibility of gaining profit. Many alts have poor liquidity simple because there are little or no buy orders for the coins. Its not a smart idea to buy these coins but if you are one for taking risks, then by all means, go ahead and bag some. I have seen rare situations where coins with low liquidity moon over a period of time
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