Topic: Check Liquidity Before you invest (Read 1530 times)
Most times you see people or let me say traders shouting that a coin is mooning, that it has done over 100%, but they don't bother to check the trading volume, most of those coins are pumped and if you create a sell order,it won't pick.so it is very important to check the trading volume of a coin
I saw too many times people invest blindly without checking the basic like liquidity. They only care about the price which very easy to manipulate if low liquidity or trading volume. I think only newbies making this kind of mistake because no way a veteran trader wouldn't check this before investing.
most people want to get rich quickly so they take shortcuts to invest in coins with large profits but lack quality, so they fall into a sea of losses, now it is enough to invest in today's top coins like ETH and BNB, although the profit is small but the quality is high.
Liquidity is important in any market because you do not want a critical shortage, as opposed to a general shortage, to sink your investment. For this reason, we established an initial target on December 3, 2016 for ETH in order to begin facilitating a DAO token sale on November 15, 2016. For this purpose, we conducted a scaling exercise to increase the network capacity so as to be able to facilitate the DAO token sale on November 15.
The DAO token sale was launched on November 17, 2016, and we observed an immediate spike in the price of ETH. For the first hour, it was fluctuating around $900–1000. As the volume increased, the price stabilized at approximately $600.
The DAO token sale was launched on November 17, 2016, and we observed an immediate spike in the price of ETH. For the first hour, it was fluctuating around $900–1000. As the volume increased, the price stabilized at approximately $600.
Investing in Altcoins is red flag especially for newbies, we all know the huge amount of scams going on even sometimes when you invest in a project with serious goals and clear roadmap, the team disappear instantly after their sales which highlight that ways of scam are evolving every day and comes with a new look so we have to be very careful and skeptical nonetheless I can still name a few new projects that can have a bright future.
I would like to point that making a profit from pump of shitcoins as you mentioned, firstly can only be a pump and dump act and secondly, it misleads newbies into investing without even mentioning that it is illegal and unethical so never forget "If it's too good to be true, it probably is".
I would like to point that making a profit from pump of shitcoins as you mentioned, firstly can only be a pump and dump act and secondly, it misleads newbies into investing without even mentioning that it is illegal and unethical so never forget "If it's too good to be true, it probably is".
And then there are the projects that don't get enough attention because they don't do huge marketing campaigns with tons a FOMO.
Scam exchange can attract you by pumping a certain coin in their exchange and once someone deposits a big amount, they scam.
I am a little confused about the scams made by the exchange, do they change prices when we make a deposit with a large amount?
Thanks, as the name implies alternative currency is a substitute to BTC since there is desire to have another currency other than BTC scammers sees it as a privilege to scam people because they notice the desire of individual to make profit is high.
For one not to get scammed one have to consider liquidity. Because is Paramount. For the exchange of the investment of one venture into.
Liquidity is regarded as the ability to convert a coin or token into a stable one without reduction in value and within short period of time.
For one not to get scammed one have to consider liquidity. Because is Paramount. For the exchange of the investment of one venture into.
Liquidity is regarded as the ability to convert a coin or token into a stable one without reduction in value and within short period of time.
Just holding Bitcoin is more than enough, its growth is unbelievable compared to more traditional investments, but people become greedy and start looking at alts thinking they will grow faster. and higher. Liquidity is a need for tokens, and that will help us protect our scam project more either because the scam project will have very little liquidity or it will always be zero liquidity.
Obviously, we need to consider the altcoin's liquidity before deciding to invest. If the liquidity is too low, that altcoin will be manipulated and the price will collapse at any time. I personally never invest in altcoins with liquidity below $ 1 million per day
Definitely this is one of the primary factors to look at along with the exchanges the coin is trading in before investing in any coin. But sometimes it is not always possible during the ico stage so look at the track record of the team as well.
The track record of the team doesn't give a lot of guarantee. Remember there was a lot of scam projects who have faked the identity ot the team and the scammer behind the project have stolen the others identity. Liquidity will always become the main ceonsideration and that's better than track record of the team.
High liquidity- You can sell your coin anytime as much coin you want, the market has enough buyer to buy your coin.
Low liquidity- There are no enough buyer to buy your coin.
That's the hardest part of investing in new coins or unknown coins, you will always have an issue on liquidity and you will sell it at whatever price there is in the market, it's always recommended and a good idea to always go for top coins in the market because you can liquidate it anytime, I have a lot of scam coins stuck in my wallet because of low or no liquidity.
Definitely this is one of the primary factors to look at along with the exchanges the coin is trading in before investing in any coin. But sometimes it is not always possible during the ico stage so look at the track record of the team as well.
Picking the right project to invest your money needs a lots of efforts and time as there are many scam projects that surround this industry, knowing how to sort each project before selecting where to put your money is really something that in need of reviewing and researching. Like what many was said liquidity from the exchange helps you to take a closer looks and assess if the project really have a good potentials.
Agree, liquidity is something that you must consider when looking for altcoins to invest to. There are a lot of shitcoins that were pumped, don't just look at the current price. I had a problem with this when I was a newbie, I bought out of FOMO but when I was trying to sell, I can't sell them in a decent price since there are only few buyer and the market volume is not that high.
Definitely this is one of the primary factors to look at along with the exchanges the coin is trading in before investing in any coin. But sometimes it is not always possible during the ico stage so look at the track record of the team as well.
Good thread... It is quite frustrating having to deal with issues of low liquidity due to lack of interest in a particular coin or token. Sometimes, you notice a pump in token possibly from apps such as blockfolio, coinstats etc, and then you think you are all made only to rush down to the exchange and discover it was just a 10usd buy order that inflated the increment in price and that there is no liquidity whatsoever. It really is frustrating. There over a hundred of shit coins lying in my wallet due to the fact that they are either trading on shit exchanges or that there is almost zero liquidity. One has to be really careful before investing in any project Irrespective of how good the project looks like.
You are right partly because sometimes revers maybe the case regarding low liquidity, o once bought a low liquidity coin sand later it mooned above x200 but truth is before you buy low liquidity coin first check the project and team on social media as some do have low liquidity due to exchange and some due to dumps from hunters. Regarding high liquidity coins it's a very good move for newbies that do not know about about Crypto and research. Good liquidity would help them curtail lost.
Somehow sometimes low liquidity might be what you need to make a life changing invesment. There are always undervalued coins with low liquidity that are yet to be noticed which are gems. Once such project see the right marketing and product development then people begin to have interest and then it breeds demand. This can take a long while which requires much patience. If you are day trading or short term Investment then you can't do this. You need a very high liquid project to Invest into.
I hope that there are not people that are buying this dead coins without volume because it has to be clear that there is no interest in this coin, and you pay for nothing because you can´t sell this "nothing" to anyone, right? 
Has any0one thought of situation where a trading coin exchange might have liquidity when checked at the initial stage and after some tie, the liquidity disappears? That does not eliminate the fact that there is no liquidity generally on the exchnage, but for the coin, in particular, it seems to have vanished. I feel it can happen.
This is why one should not trust every coin for a long time, except for few that still maintain their liquidity and volume.
This is why one should not trust every coin for a long time, except for few that still maintain their liquidity and volume.
Low liquidity won't help the new investors to earn smart money from crypto space . If especially you believe that you found a good project ,but liquidity is low its will not help you out to earn some bucks . Holding Bitcoin is smart decision , but are people get greedy and start looking at altcoin thinking they'll grow faster and higher like jet . We all know the amount of scams going on in a various way which hart the new investors . It is very sad that 90% of campaign scams ,after few days of pump and dump when listed on exchange,
they gone left nothing but useless token . Please checked everyone liquidity its very important before investing .
they gone left nothing but useless token . Please checked everyone liquidity its very important before investing .
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