Topic: Check Liquidity Before you invest - page 5. (Read 1508 times)
I agree with your reasoning. Liquidity is very important for trading and for investing in coins. I always check the liquidity before buying.
Yeah, this is what newbies exactly need to know! Even if the price goes high, but has low liquidity, then you won't be able to sell your coins because there is no one to buy your coins in the market. I wonder why you were saying that shitcoins getting pumped up by 100% is both good and bad. Shouldn't it be just a bad thing since poor naive investors are going to fall for it. Or are you saying its good because we can take advantage of the pump and make some profit?
Those who are investing into low market cap coins are pure speculators and I believe that they know about this problem. But from top 100 coins you can't choose altcoin that Has low liquidity because exchanges fight to list them to earn free from trading 
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Volume and liquidity are different things, there could be a lot of volume but there could be a lot less liquidity. Volume is when people buy and sell a coin which means it could be faked and people put up orders themselves and execute it themselves quickly enough without letting anyone else get in the way, that is at least what I know, that is why volume is quite important for many coins to realize if the amount of interest went up but when it comes to smaller coins volume means nothing since it could be faked.
However, liquidity is when people put up orders, so if you can sell 1 million dollars without changing the price too much that is a coin with good liquidity, if there isn't even 1 million dollars worth of orders even if you kill the market by selling all, that means there is no liquidity, that is the difference.
However, liquidity is when people put up orders, so if you can sell 1 million dollars without changing the price too much that is a coin with good liquidity, if there isn't even 1 million dollars worth of orders even if you kill the market by selling all, that means there is no liquidity, that is the difference.
This is it. Liquidity is very essential in the crypto world, if you go into investing in a project without liquidity then know you are stocked already, before investing or even trading check the volume in the market for that particular coin. Let's open our eyes to the liquidity of crypto assets we want or wish to get in.
You have to check a lot more than just liquidity before you invest into anything, however if you are not checking liquidity you may fall for a coin that went up a lot but all due to there not being any competition.
Same happened with BSV very recently, it looked like it was the fourth biggest coin for a while and it still looks like a big coin however reality is the fact that there are thousands of dollars at most changing hands, all the other ones are fake and no proper place lists them at all. That happened to many altcoins I was involved actually, they are usually listed in some bad exchanges and they have such a low volume that owners all try to make a fake volume so it doesn't look like nobody cares, unfortunately that usually never works for them and the people who invested to them.
Same happened with BSV very recently, it looked like it was the fourth biggest coin for a while and it still looks like a big coin however reality is the fact that there are thousands of dollars at most changing hands, all the other ones are fake and no proper place lists them at all. That happened to many altcoins I was involved actually, they are usually listed in some bad exchanges and they have such a low volume that owners all try to make a fake volume so it doesn't look like nobody cares, unfortunately that usually never works for them and the people who invested to them.
its a welcome advice both to the newbies and those who have existed in the space for a while but have limited information as regarding the liquidation of tokenised platforms most importantly exchanges that come up these days with so much promises and they don't consider liquidity to be the challenge facing the entire exchanger space of the technology.
You are right, liquidity is one of the points that beginners must learn in order to adapt to the dynamic cryptocurrency market. If this basis is not owned, it will be very easily trapped in a market that leads to losses. One of the characteristics of exchange or coins or tokens that have low liquidity is the difference in price or gap that is too far apart, this should be watched out for. 
It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100% 
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 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.
its a welcome advice both to the newbies and those who have existed in the space for a while but have limited information as regarding the liquidation of tokenised platforms most importantly exchanges that come up these days with so much promises and they don't consider liquidity to be the challenge facing the entire exchanger space of the technology.
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.
Well, you are right. Liquidity is very important to pick the right coin, not heading for the dead coins. It seems not too hard to find the coins with high liquidity. But, are there any other things that we must pay attention to when trading or buying some coins or tokens in the market? Of course, we must also see on what exchange it is listed, the volume, circulating supply, and also the total token supply. They will influence each other for real. Low liquidity- There are no enough buyer to buy your coin.
Investing in new coins can really be dangerous. I have been studying trading recently because it seems to me to be the best direction right now. If you trade bitcoins, or choose a well-known altcoin, then you will have more chances to increase your capital.
Some exchanges even put notes on this kind of coins that have low liquidity so that users do not fall into the trap due to the coin's liquidity problem.
However, there are very few such exchanges.
I can only mention the Stelarport exchange with similar functionality.
In any case, the first thing that newcomers should understand while interacting with their assets is how liquidity works and what it is.
However, there are very few such exchanges.
I can only mention the Stelarport exchange with similar functionality.
In any case, the first thing that newcomers should understand while interacting with their assets is how liquidity works and what it is.
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if people buy coins with low liquidity can only be used for daily trading, we know that every day there must be a coin that fluctuates very drastically, then they take advantage of this situation when the coin is pumped and has a higher volume than usually.
~snip~How could we make profits in day trading if ever the coin only has minimum buy orders?
It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100%
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.
Liquidity is the main reason to dump after the bad market situation. During bearish market all coin price is dump but for low liquidity price will always dump. Although you are wrong about liquidity because liquidity and volume isn't same. Low liquidity coin can have high volume, you can follow the funds rise of this project. 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.
You're right. There are numerous coins now with no liquidity but heavy pumps daily. If you check the order book you will be surprised and wonder where the price was gained from. Please everyone liquidity is very important.
In this part I agree and not agree. When you say always check liquidity I must say " volume " because that is our priority, I agree with you. In other side you also say " invest in a coin ", my opinion most investment using long term period for their plan. If I take popular coin it will no problem but if I take new coin that will become problem because new coin still built trust and create their own market, there's no guarantee about liquidity. We have different opinion but I respect yours, anyway thank you for your explanation about " liquidity.
Volume isn't the priority, not at all. Liquidity brings the volume and volume without liquidity is just wash trading, so i would say that liquidity if far more important then any faked volume.
if people buy coins with low liquidity can only be used for daily trading, we know that every day there must be a coin that fluctuates very drastically, then they take advantage of this situation when the coin is pumped and has a higher volume than usually.
How could we make profits in day trading if ever the coin only has minimum buy orders? In-fact we would need a lot of buy orders to perform day trading with any such coin which of-course needs to have high liquidity. Newly launched coins might have low liquidity at the initial stage but as the time passes by along with the development from the team than that project can gain high liquidity and investing into such projects can be beneficial as they usually make a major pump once any strong development news is been showcased by the team.I can only find investing into such projects reliable rest we should always try to avoid investing into any coin which is already been launched since months but yet have low liquidity.
In essence and in simple terms, liquidity is the ability of tokens to be bought on the market. meaning when liquidity is high, it means that there are many buyers on the token and vice versa. you might want to check the market cap, volume, and see transaction history in the "buy" section. if the liquidity is high, then the market cap will be high, the volume is also high, and transactions on "buy" will continue to occur even not in a matter of days, but hours. hope this helps 
That's a good thing to do and all the results might be matter to this. It is in big considerations to invest coin/s that shows progressive and profitable performance than those who left behind. Besides, we are the ones making our future in crypto and doing this will help to make our future clear enough to succeed and achieve our goal.
Many people have experienced bad things in crypto is that because of the wrong choice of coin. If we are familiar with the market movements, it eventually to looks first it's market volume before investing.
Many people have experienced bad things in crypto is that because of the wrong choice of coin. If we are familiar with the market movements, it eventually to looks first it's market volume before investing.
Golden rules that traders must follow is checking the liquidity of the coin before making the trade, the things I follow is the coin should be listed in the top exchange like Binance, Okex, Huobi, etc and the coin should be within Top 30 by market cap or the daily volume should be over 50 Million. These are the rules which I follow myself.
Because these things will help you exit your position immediately at the current trading price easily for most of the retail traders. Even if it is a big position it can be exited with much ease without affecting the price. Your trades should not affect the price movement in a big way
Because these things will help you exit your position immediately at the current trading price easily for most of the retail traders. Even if it is a big position it can be exited with much ease without affecting the price. Your trades should not affect the price movement in a big way
liquidity very important for traders to buy and sell their coins. without liquidity our portofolio will be shitcoin and maybe delist from any exchanges. i am agree with statement above that we must check liquidity on coin that we will picked.personally i am prefer trade on best exchanges , besides they provide high liquidity they also already select coins carefully . but sometime coins on there also has possibility to delist.
of course, we will choose the best asset that is in the best exchange too. shitcoin won't have good liquidity unless they use small exchanges to adjust the trading volume of their coins to look better. we find it in several exchanges.Jump to: