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Topic: Check Liquidity Before you invest - page 2. (Read 1530 times)

full member
Activity: 1050
Merit: 100
April 26, 2020, 02:18:39 PM
It's a really nice thread that will benefit a lot. How to identify a fake project and how to identify a good project is very well illustrated in this thread. We hope everyone will invest in considering high liquidity and low liquidity when they will be  investing.
Yes, this thread is very helpful for everyone and will always be a reference for new investors in the crypto room, because they sometimes will not know which projects are fake and which are original projects, unless they make an analysis first before investing.
full member
Activity: 496
Merit: 100
April 26, 2020, 02:10:35 PM
It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100%  Grin
That's good and bad both to be honest. For them who have invested a lot of money in 2018 ATH, it's good for them but for newbie, this shitcoin may be destructive to your crypto journey unless you become very smart while investing.

One term I would like you to introduce is- "Liquidity"

I don't want to go in details here since the goal is to make you alert about low liquidity.

Liquidity is simple term refers to liquid your crypto asset into fiat or it can be BTC too. Since, most of the times we trade with BTC, I will go with BTC here.

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.

You can check this easily in exchange. Just visit the market for a coin and check the buy and sell orders and the amount. If there are low buy orders despite a high sell order, this means you can barely liquidate your coins there.

SO, when you are going to invest in a coin, check the liquidity of that coin for a certain period. Otherwise, don't invest. Also, before depositing big amount in exchanges, check if there has enough buyer at your desired price to buy your coin. Scam exchange can attract you by pumping a certain coin in their exchange and once someone deposits a big amount, they scam.

The altcoin market is more complex then you can ever think of. There are thousands of ways of scamming you which you can never imagine, even after being scam, you can't realize that it was a scam. Before invest, be smart enough to learn the tactics and save yourself.
That's true, sometimes I imagine that there will be more than thousands ways to scam investors in shit exchange. You can't find accurate information about liquidity pool in shit exchange. For me even liquidity pool isn't enough to invest, in last bullrun so many coin has huge liquidity pool and volume in exchange but now volume is almost zero and can't check liquidity pool.
full member
Activity: 1204
Merit: 220
(ノಠ益ಠ)ノ
April 26, 2020, 01:13:11 PM
lol check the source code before you invest! and then ask yourself - why is there such great volume for a project with 2 commits in 5 months? Grin
member
Activity: 1540
Merit: 68
April 26, 2020, 01:12:07 PM
I feel liquidity is not something that prioritize whether a token is worth investing or not.

I believe what matters most is the product of the token and its community, can they drive a demand for the token?

Hex used to be a token without liquidity or volume, but in 2weeks, it has doubled its liquidity and trading volume is higher.

Lets just say it depends on circumstances, so always od your own research as crypto tokens have different patterns
member
Activity: 1008
Merit: 12
SAPG Pre-Sale Live on Uniswap!
April 26, 2020, 12:57:53 PM
To be honest almost all the projects and their tokens or coins that have launched in almost last 2 years there has been no or very low liquidity which makes them worthless to even trade and the trick here is that even if the team make large claims but we cannot track amount raised and real investors during the tokensale, we only see the demand and liquidity when it lists on an exchange and unfortunately no new coin is getting any good liquidity which just shows that there is no interest from community in buying or trading the new coin.
hero member
Activity: 966
Merit: 502
April 26, 2020, 12:51:50 PM
Can this even be over emphasised? As far as I know, liquidity says a lot about a project . It can tell me about project worth, development capacity, community strength, depth and volume as well as trust.
legendary
Activity: 3276
Merit: 3537
Nec Recisa Recedit
April 26, 2020, 12:30:34 PM
I am new to this sector. I do not know how and where to check for liquidity. It would have been great if you could have given some website addresses to check liquidity.

check exchange/ if you don't know which exchange, have listed a specific altcoin/token check coinmarketcap/coingecko
Bear in mind there is always the risk that some exchange are "tricky" despite listed in these aggregators.
Always make a research before sending your token you will avoid a lot of problems.
jr. member
Activity: 80
Merit: 1
April 26, 2020, 12:21:33 PM
I am new to this sector. I do not know how and where to check for liquidity. It would have been great if you could have given some website addresses to check liquidity.
jr. member
Activity: 76
Merit: 1
April 26, 2020, 11:54:43 AM
It's a really nice thread that will benefit a lot. How to identify a fake project and how to identify a good project is very well illustrated in this thread. We hope everyone will invest in considering high liquidity and low liquidity when they will be  investing.
full member
Activity: 1099
Merit: 116
March 02, 2020, 11:21:52 AM
Only holding BTC is the best strategy for safer investment in the long run and it will bring expected profits or safe your funds but investment in new project means 90% chance of your funds destruction. If investors find a good project, they can invest but greedy people try to make huge profits in few days and they get trap.
sr. member
Activity: 1274
Merit: 337
Enterapp Pre-Sale Live
February 24, 2020, 11:47:35 PM
Many of the newcomers think it can be big overnight here.This may be true in some cases. However, most new investors have lost their capital. So invest in lazy money that won't be a problem if you waste it.
Yes, it would be better if we use money that we don't use to make investments, because when we experience sudden losses, we don't feel much regret, even though there is little regret and disappointment.
copper member
Activity: 1120
Merit: 2
February 24, 2020, 11:02:38 PM
Many of the newcomers think it can be big overnight here.This may be true in some cases. However, most new investors have lost their capital. So invest in lazy money that won't be a problem if you waste it.
hero member
Activity: 2268
Merit: 507
February 24, 2020, 08:57:22 PM
Absolutely an enlightening topic. Before investing money in a particular coin/token It's really necessary to understand about the liquidity of that coin, there are many cryto traders who don't pay attention on this point and yes mostly of them are newbies they just need be aware and I think this topic is good example to make them aware.
Newbies are mostly not fully equipped with the knowledge on investing coins so they should not focus on altcoins because it's very risky to invest. Bitcoin has always a high liquidity no matter what the season so they should start investing in bitcoin where there are sure buyers rather than risking their money in altcoins wherein their future is still unknown.
I think there will still be a lot of new investors choosing to invest in new coins because for them this is the fastest way to make money in this market. However, the risk is much higher if the coin does not have good liquidity and you will definitely can not sell when the market starts to turn red. In my opinion, should only invest in new coins at the top exchanges recommended by people.
That's right. Some times people are blaming if the new coin can't be trusted but that's actually no 100% true. We have a bunch of trusted coins who are still actively developing the project. Liquidity just like an insurance that makes us able to liquidate our money instantly. This is a very important part to choose an investment in crypto.
sr. member
Activity: 625
Merit: 250
io.ezystayz.com
February 24, 2020, 07:21:07 PM
#99
Absolutely an enlightening topic. Before investing money in a particular coin/token It's really necessary to understand about the liquidity of that coin, there are many cryto traders who don't pay attention on this point and yes mostly of them are newbies they just need be aware and I think this topic is good example to make them aware.
Newbies are mostly not fully equipped with the knowledge on investing coins so they should not focus on altcoins because it's very risky to invest. Bitcoin has always a high liquidity no matter what the season so they should start investing in bitcoin where there are sure buyers rather than risking their money in altcoins wherein their future is still unknown.
I think there will still be a lot of new investors choosing to invest in new coins because for them this is the fastest way to make money in this market. However, the risk is much higher if the coin does not have good liquidity and you will definitely can not sell when the market starts to turn red. In my opinion, should only invest in new coins at the top exchanges recommended by people.
hero member
Activity: 2814
Merit: 576
February 24, 2020, 06:58:03 PM
#98
Absolutely an enlightening topic. Before investing money in a particular coin/token It's really necessary to understand about the liquidity of that coin, there are many cryto traders who don't pay attention on this point and yes mostly of them are newbies they just need be aware and I think this topic is good example to make them aware.
Newbies are mostly not fully equipped with the knowledge on investing coins so they should not focus on altcoins because it's very risky to invest. Bitcoin has always a high liquidity no matter what the season so they should start investing in bitcoin where there are sure buyers rather than risking their money in altcoins wherein their future is still unknown.
sr. member
Activity: 2828
Merit: 344
win lambo...
February 24, 2020, 06:55:14 PM
#97
in addition to liquidity before investing it would be nice to check the whitepaper or the steps that the coin will do, this might be for new coins. then for old coins in my opinion the popularity will greatly affect their liquidity like BTC. so when they already have popularity I'm sure they most likely have high liquidity.
It seems to be helpful to check its whitepaper or the focus of this project if it is new but if we planning to invest in those coins that are already been existed for a while, it is very important to look its liquidity. This could help to identify if this coin has a better future or not.

For the safety and profit assurance, it is better to consider those coins that are listed in known exchanges and having a huge market volume. There is no need to waste time searching for another one coz you can't find any promising coin on the bottom list.
sr. member
Activity: 882
Merit: 260
February 24, 2020, 06:30:07 PM
#96
It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100%  Grin
That's good and bad both to be honest. For them who have invested a lot of money in 2018 ATH, it's good for them but for newbie, this shitcoin may be destructive to your crypto journey unless you become very smart while investing.

One term I would like you to introduce is- "Liquidity"

I don't want to go in details here since the goal is to make you alert about low liquidity.

Liquidity is simple term refers to liquid your crypto asset into fiat or it can be BTC too. Since, most of the times we trade with BTC, I will go with BTC here.

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.

You can check this easily in exchange. Just visit the market for a coin and check the buy and sell orders and the amount. If there are low buy orders despite a high sell order, this means you can barely liquidate your coins there.

SO, when you are going to invest in a coin, check the liquidity of that coin for a certain period. Otherwise, don't invest. Also, before depositing big amount in exchanges, check if there has enough buyer at your desired price to buy your coin. Scam exchange can attract you by pumping a certain coin in their exchange and once someone deposits a big amount, they scam.

The altcoin market is more complex then you can ever think of. There are thousands of ways of scamming you which you can never imagine, even after being scam, you can't realize that it was a scam. Before invest, be smart enough to learn the tactics and save yourself.

Doing thorough research and observant will always be the key to be able not to get scammed and assure that the investment you will be safe with the assurance that it would grow into a desirable price you do want to have. Checking the liquidity of a certain coin in a right and legible exchange is really indeed a good help and point to always check with if you do want to liquidate your asset into Bitcoin or even other sort of cryptocurrencies. But as what I can observe, most people whenever doing trades mostly chooses to get into Bitcoin trading to be able to obtain Bitcoin. Checking the buy and sell order in an exchange will be a good help for you to decide whenever you want to liquidate your assets and help you to get into deciding if you will wait or get into trading your asset. Always check if the price movement in an exchange is legible because there are some cases that there is a glitch in the system wherein the shown price is too high but does not reflect in the market order.

Well indeed that Altcoin is more complicated other than the way we perceive or see it because there are lots of complications that happens within the Altcoin market so best thing is to be always observant to be able not to get scammed when doing important transactions with Altcoins. Also always remember to only invest amount you can afford to loose and not to always go all in.
jr. member
Activity: 224
Merit: 2
February 23, 2020, 09:25:22 AM
#95
in addition to liquidity before investing it would be nice to check the whitepaper or the steps that the coin will do, this might be for new coins. then for old coins in my opinion the popularity will greatly affect their liquidity like BTC. so when they already have popularity I'm sure they most likely have high liquidity.
member
Activity: 1204
Merit: 11
February 23, 2020, 09:07:06 AM
#94
Absolutely an enlightening topic. Before investing money in a particular coin/token It's really necessary to understand about the liquidity of that coin, there are many cryto traders who don't pay attention on this point and yes mostly of them are newbies they just need be aware and I think this topic is good example to make them aware.
hero member
Activity: 1526
Merit: 501
DGbet.fun - Crypto Sportsbook
February 23, 2020, 08:41:31 AM
#93
I agree that before deciding to invest, we see liquidity in the coins or tokens that we want to invest. Liquidity illustrates how actively the coin or token is traded and if the liquidity or transaction volume is large, investors can withdraw their investment at any time without worrying that no one will buy it
Of course, to increase flexibility and not to freeze capital in the market, checking the liquidity of a project will be a necessity when easy liquidity conditions will make us feel secure as you say but don't just look at the liquidity to make the investment decision, let's incorporate the analysis and information we get because pitfalls can appear at these parameters. The whales can control the game and create fake liquidity in a short time, so at least before investing, we should look at that project more and understand the amplitude of oscillation, price range will be able to move
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