Topic: Check Liquidity Before you invest - page 3. (Read 1530 times)
Liquidity illustrates investor interest and I think liquidity is an important factor that needs to be considered before deciding to invest. Coins or tokens that do not have liquidity will make it difficult for investors when they want to sell because it will result in prices falling deeper
Its a good advice, but check the use cases is advice on top of this. If there will be real use cases we will see real liquidity
And how can we examine real use cases? because not all countries use the same product, so we will be difficult and can't even see the products used by other people out there, is there an easy way to see that?
Personally, I invest only in those currencies in which I am 99.9% sure. About 2 years ago, I remember people who invested in different tokens and shitcoins, as a result, they were left with nothing. While I managed to make a small profit on my investments. Personally, I would not take the risk and invest in second-rate currencies, my choice is the top 5-10 of the most popular altcoins.
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Savedroid token is a good example how important is the liquidity, they were delisted from HitBTC, they are only on IDEX, but you are not able to buy or sell the tokens because noone is really using IDEX exchange.
Dude, this is literally what I look for when it comes to coins after price. I had this project once where it pump 200% in a single day and as I was planning to sell it, there's just no buyers in it, all were selling at the time. In my opinion, buying a low liquidity coin is like buying a lottery ticket. If it pumps, you win big which rarely happens but when it dump, all your money is gone and it happens most of the time. High risk, low reward in short.
I just want to point out, exchanges plays a really vital role when it comes to liquidity. The liquidity of a coin depends on each exchange and you should all possible exchanges before investing in a coin.
I just want to point out, exchanges plays a really vital role when it comes to liquidity. The liquidity of a coin depends on each exchange and you should all possible exchanges before investing in a coin.
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.
I would advice for most people to not try to trade crypto at all, it's a very easy way to burn your money, especially if you believe that you can find a "good project". Just holding Bitcoin is more than enough, it's growth rate is incredible compared to more traditional investments, but people get greedy and start looking at alts thinking they'll grow faster and higher.
Good point and at the same time investors should watch out because Liquidity can be faked out as well as trading volume, the example is on Coinmarketcap now, with liquidity rating you can still see P2PB2B exchange on the high ranking position
Of course, now a lot of liquidity in the cryptocurrency market has not been shown accurately. But we can’t just agree with large trading volumes.traders to use the exchange and start buying, it's needs to be well analyze before riding since there's also possibilities that you'll be burned and
be stuck with your holdings, taking care of your money is very crucial you needs to observe and study every position to take.
Speaking of liquidity which means that it can easily be exchanged, it must be followed where the place of exchange which is easy, not only easy but we must choose an exchange that has good reviews or is used by many real people.
Funny enough, but I'm pretty sure most of the big companies took care of reviews on their service so you won't now the clear truth anywaylegendary
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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.
Well said and one of the ways to avoid falling victims to liquidity scam is by been aware of exchanges where such project you intend investing in is listed. Coins/tokens that are listed on newly launched exchange irrespective of how promising they look should be given given a second thought due to the reason stated by the OP (Low liquidity).
This scam isn't associated with only unpopular exchanges as mercatox and c-cex which are somewhat popular exchanges are also guilty of having low liquidity for coins listed on their platform due to the size of the customers they have and usually such project price movement could easily be manipulated. That's whay you find many altcoins getting pumped are usually listed on C-Cex exchange.
Also one should be careful with different noname exchanges. They may have awful conditions for trading or withdrawing your money. Also there may be some stupid bugs in their scripts. And yeah, low volumes of course.
Speaking of liquidity which means that it can easily be exchanged, it must be followed where the place of exchange which is easy, not only easy but we must choose an exchange that has good reviews or is used by many real people.
Funny enough, but I'm pretty sure most of the big companies took care of reviews on their service so you won't now the clear truth anyway 
Good point and at the same time investors should watch out because Liquidity can be faked out as well as trading volume, the example is on Coinmarketcap now, with liquidity rating you can still see P2PB2B exchange on the high ranking position
Of course, now a lot of liquidity in the cryptocurrency market has not been shown accurately. But we can’t just agree with large trading volumes.
Good point and at the same time investors should watch out because Liquidity can be faked out as well as trading volume, the example is on Coinmarketcap now, with liquidity rating you can still see P2PB2B exchange on the high ranking position
This is a great thread, I am a newbie in crypto investment and I am kind of excited to find this thread. Some people I know just invested in projects cause the token pumped a bit not minding if there is any form of liquidity. Some of this projects couldn't even continue in the long run.
Trade orders also gets manipulated by exchange this is called wash trading so you have to make analysis by entering into exchange and see the price of trade order,if they got only few orders for high price and the remaining all of them for very cheap price then you shouldn't trust that coin to trade or invest its just manipulated by exchange or any whale to get newbies into trap.
Its a good advice, but check the use cases is advice on top of this. If there will be real use cases we will see real liquidity
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
this is a very interesting point about trading. it make sense to me because i never understand clearly what liquidity is all about. Most exchanges involves in shabby business to invite more traders in the platform. if you are not careful about this, you might be scammed and you might loose your funds.
don't be fool with what CMC and other websites list of exchanges showed you about their market cap and volumes. if you visit these exchanges, the reverse is the case. Most exchanges provides fake volumes and liquidity of their platform. their might be lots of sells but the buy options are always small.
don't be fool with what CMC and other websites list of exchanges showed you about their market cap and volumes. if you visit these exchanges, the reverse is the case. Most exchanges provides fake volumes and liquidity of their platform. their might be lots of sells but the buy options are always small.
As an investor in Crypto, liquidity remains one of the important factors to be considered and checked properly before investing. A lot of newbies fall victim of this and at the end of the day when they loose, they tag a project scam even when the team has a good intention. Liquidity is a two way thing. Some projects are just working on theirs.
That is a must-do practice before investing in cryptocurrency one of the many factors why the cryptocurrency coin/token is still alive Just because of its liquidity, without any liquidity, the project won't prosper into a full-blown development thats why go for the top listed altcoins in the market that has a large liquidity and invest any amount you desire but just choose the reliable cryptocurrency exchange in the market.
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