Alts with no liquidity on exchanges - page 3.

umbara ardian

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Quote from: Javi_Anibarro on December 06, 2019, 10:29:41 AM

Daily volume comes from total transactions that happened on the exchange, and the transaction itself comes from liquidity. If the token or the coin has a big daily volume but they do not have liquidity that means they were using a fake volume to boost their ranking.
No liquidity = No demand.
Is it worth to invest in it? personally I do not think so, but that is my choice. You might have a different opinion about it.

I totally agree with you. Never invest in altcoins without liquidity and demand. Its price will certainly not go up without the attention of the community

btcdie

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In fact the main factor comes from manipulation, in fact this is just a game of top people, trying to play with no liquidity and entice interested people like OP. I am surprised by all that, sometimes someone is fooled by seeing a large volume, even though it is fake. platforms such as CMC are very good, but I think it is necessary to deal specifically with manipulated volumes, which often happens on low-reputation exchanges.

novaprime

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Quote from: Zackgeno96 on December 08, 2019, 01:59:56 AM

Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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 most of those volumes are fake. Even in past there were many exchanges found guilty of falsifying their daily trading volume and this affects users a lot. Many a times when I was new in Crypto I used to buy coins for arbitrage, but on many exchanges I wasn't able to sell the coins that I brought and this made me lose money many a times,because when I transfered my coins to the exchange with a high price then those were unable to sell just because of no demand at all for those coins.

Agree. Most coins listed at regular exchanges use fake trading volumes and cannot be liquidated if you want to sell. I think this is the case that anyone will encounter when investing so it is best to learn that exchange before deciding to invest because the risk may come to you at any time. Of course shitcoin investing will only make you more losses during this time.

naomi-the-cat

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Tokens without liqiuidity should be delitsted from exchanges. Almost all of them are dead useless projects

binhvo1505

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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 fake volume tokens are all dead tokens. Projects or goals are dead so there are no buyers. There will be no good projects without buyers. So, for tokens or alts with a volume of less than $ 5k, they are fraudulent organizations and you absolutely should not invest.

makolz26

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Quote from: el kaka22 on December 08, 2019, 04:23:17 AM

No liquidity equals death for altcoins. Believe me when I say this because most altcoins with volume is actually fake ones as well, they are not really making any sort of money at all.

Most of those tokens that you see that has millions in volume per day actually has close to couple thousand at most but gets help with bot supports from the team and so forth to make it look like it is alive. That is where majority of your funding for the token actually goes as well. Long story short, if a coin that actually has a volume is very rare, rest are fake volume and if there are ones with fake volume that eventually dies, the one with no volume is basically dead already anyway. Get out from market price if you have to but always get out, never stay because it won't recover.

If the exchange and coinmarketcap will gonna removed those dead coins maybe thousands will be removed, so far, if it has really no value at all then they deserve to be eliminated in the crypto so people won't waste their time thinking it will have real value soon, or hoping for it, they should stop hoping for them and move on with other legit projects and charge those to their experience.

el kaka22

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No liquidity equals death for altcoins. Believe me when I say this because most altcoins with volume is actually fake ones as well, they are not really making any sort of money at all.

Most of those tokens that you see that has millions in volume per day actually has close to couple thousand at most but gets help with bot supports from the team and so forth to make it look like it is alive. That is where majority of your funding for the token actually goes as well. Long story short, if a coin that actually has a volume is very rare, rest are fake volume and if there are ones with fake volume that eventually dies, the one with no volume is basically dead already anyway. Get out from market price if you have to but always get out, never stay because it won't recover.

crwth

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According to Investopedia [1]

Quote

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.

miklesm

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CoinMarketCap new Liquidity indicator is quite accurate, so if the volume on a single trading pair on unpopular Exchange is more than 100.000$ per day while the Liquidity rate is about 100$, this likely means the volume is fake and you will not be able to trade normally on this Exchange.

Zackgeno96

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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 most of those volumes are fake. Even in past there were many exchanges found guilty of falsifying their daily trading volume and this affects users a lot. Many a times when I was new in Crypto I used to buy coins for arbitrage, but on many exchanges I wasn't able to sell the coins that I brought and this made me lose money many a times,because when I transfered my coins to the exchange with a high price then those were unable to sell just because of no demand at all for those coins.

Exidous

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Quote from: barabarian1 on December 07, 2019, 09:53:45 PM

in my opinion it's better not to invest in coins that don't have liquidity. because indeed the daily trading volume can be falsified. it's better to choose the top coins that already have community, trading volume and liquidity. investing in new coins is indeed very risky. it's better if you want to do daily trading then invest in the top coins like bitcoin, litecoin and binance coin.

Coins without liquidity are shitcoin and should not be invested because the risk will be very high. I often encourage people to choose only the coins listed at the big exchanges with good liquidity because that's where you don't need to worry much about trading. In one way or another, profits need to be guaranteed and always trust that investment before making a decision.

huu78

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If there is no liquidity allow the volume is false because there is no demand against the coin. But it could be though there is no good demand their coin is riding slowly very well because it is assisted by the dev that often controls the price in the market. It is an option, smart to choose which coin is good for both the short and long term. Choose your own choice.

fuer44

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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.

for the short term, it is very unprofitable. because altcoin without liquidity is very slow to move, because they focus on the product and its development first, then will focus on the price. even if all else fails, the price is not guaranteed. means it's very risky whether it's for the short term or long term.

LouVandetta

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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.

Worth? Not at all I think. An alts that has no liquidity but suspiciously has a big volume is already weird as it is.
So, I think it's safe to assume that the volume in there were mostly fake, as to make to alts more popular by having a large volume, but when you checked them thoroughly it has no liquidity and real volume. What do you think? It's not even worth to invest in such alts. It's not that different from a ~~shit coins~~.

Getmon

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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 discussion about trading exchanges faking their volumes is already reaching the majority of the population in the crypto world. And it is already an accepted truth. Trading exchanges are faking volumes to make it appear as if they have the liquidity that traders need in order to have a smooth buy and sell orders. In reality, trading calls are made by bots. They are not really the real liquidity that crypto traders long for in an exchange. The competition right now seems to be on who has the highest real trading volume and not the volume per se.

barabarian1

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in my opinion it's better not to invest in coins that don't have liquidity. because indeed the daily trading volume can be falsified. it's better to choose the top coins that already have community, trading volume and liquidity. investing in new coins is indeed very risky. it's better if you want to do daily trading then invest in the top coins like bitcoin, litecoin and binance coin.

joshua123

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That's what I hate about CMC they added some token or coin that has no significant liquidity and based only on daily traded volume of that project. But this can be manipulated by exchange that are listed since they have some market maker service that can be avail by the exchange to do some trading activity for them. There should be a restriction for this, of course we eant a natural trading.

cutesgirl

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Quote from: Paulinerims on December 06, 2019, 10:12:25 AM

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.

You can check fake volume transaction or not by access to their exchange market, you can see how much buy and sell order with some coin, I think coin market cap have given correct information about some coin listed which one exchange market and how much transaction volume of this altcoin, I always get coin market site giving correct information about price and volume transaction of altcoin.

boris singer

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Quote from: Bananington on December 07, 2019, 06:13:58 PM

Quote from: betty11 on December 07, 2019, 09:21:30 AM

Never buy any coin without liquidity, in the market we have many project with fake volume and bot trade, this only lure investors to death, some even fraudulently pump their token, only to see that the traded volume is useless and one can't really sell. It will be good if all these manipulating coins can be filtered from CMC to save innocent traders.

Too many fake volumes for some coins baffles me, I watched a coin rise 240% up but with almost negligible volume. This is truly unfair since traders usually get trapped in bot trading. Coinmarketcap and coingecko have been making efforts to reduce fake volumes but to no avail.

they only provide indicators and focus more on the exchange first and then the coins that are traded there, they cannot determine anything else. the best way is to not attract interest at all and only see coins with a clear daily volume. But I have reasons for some of the coins in question, one of which is because dev is trying to make a shortcut from a temporary increase, just a kind of reaction test.

spadormie

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I don't really think that investing on alts that doesn't have liquidity at the first place in exchanges is worth investing. Since, if there is no exchange that accepts the coin, what worth does it have? Or if the exchange that is having that altcoin is not that good or does not have liquidity is also not known. If these two scenario, preceded, it only mean one thing, the coin is not that good and of course, exchange must have their own instructions for the alts that will come and go.

Topic: Alts with no liquidity on exchanges - page 3. (Read 720 times)