Bitcoin Forum

Thanks to coinmarketcap for taking the huge step of rating crypto exchanges based on liquidity, now atleast i will some developers will start picking exchanges to list their token based on liquidity ratings, if you check the link down below

https://coinmarketcap.com/rankings/exchanges/liquidity/?utm_source=coinmarketcap&utm_content=alert

You will see that exchanges like idax, p2pb2b and bitforex are way down on the ranking list compare to when exchanges are been rated with volumes, well exchanges with fake volumes can't have liquidity because they aren't real, now its left for developers, project teams to be smart

Seems many of the exchanges with low Liquidity are the true Decentralized Exchanges. I guess true DEXes should have theirs list or rated differently... True DEXes are the "real things" but aren't very popular for obvious reasons. It'll be unfair to compare real DEXes with centralized exchanges or semi decentralized exchanges

Because in decentralized exchange the liquidity itself comes from the trader while on centralized exchange they are mostly using liquidity providers to increase the volume and activity of the exchange. I do not think it is a problem for DEXes to be compared with the rest because both of them are exchange to begin with.
making it less complicated could help the users getting the information easily.

Nothing is unfair about the rating, dex lacks big in volume and liquidity, if they are simply better people would have start using them from time to time and thus creating more volume for dex exchanges

I think that the projects did not mistakenly use exchanges with a small volume, they specifically used such exchanges. However, I agree with you, this is great news. I really like CoinMarketCap and I'm glad it gets better.

This is good development. It makes things easier. It weeds out those who have fake volumes. But still, developers should do proper research. HITBTC is on top of the list but in my opinion, it is not a good place to get listed.

I agree, Fake volume coins/token will get a low rating and devs may consider the volatility of their token/coins. This is a good thing for the traders and the token/coin which currently has high liquidity on the market. I'm sure that the competition for the top 100 slots will become tighter.

This is the fastest way to know which exchanges are the best in this market and greatly reduce the risks when you choose to invest. At the moment, I always follow this ranking and only trust CMC data because it helps a lot with my investment. Now this problem has been solved and should only join some major exchanges like Binance, Okex, Huobi because these are 3 best liquidity exchanges.

Exchanges with fake volumes and too many bot faking trades must be abandoned, they are a big threat to this space, they usually mislead project teams and afterward destroy the projects.  

I do not believe in the liquidity of p2pb2b and IDAX. I think they are falsifying the volume to increase the exchange rating. I do not believe that there are still many fake volumes on the exchange.
Binance, Huobi, Okex has been a long time exchange and many are trusted by its traders.

The problem is that almost every single exchange is doing wash trading by buying and selling crypto to themselves generating the fake trading volume. The problem is that there are only some exchange with real trading volume with nothing to chose from.

well, i just quite surprised seeing forgotten exchange is the number one on that ranking.
HitBtc is the number one, and well, still many many complaint for that exchange , and mostly about withdrawal problem, or missing funds.
so , did that rank is real ?

It seems that you do not understand what the OP is talking about. Did you even check the coinmarketcap link? The new coinmarketcap liquidity metric aims to combat exchanges faking their volume to stay up in the CMC ranking. Those at the bottom of the list means they are most likely the exchanges with fake volumes regardless if it's a CEX or a DEX.

Read these threads so you will have a better idea:
https://bitcointalk.org/index.php?topic=5202171.msg53100047#msg53100047
https://bitcointalk.org/index.php?topic=5202098.msg53100397#msg53100397

its good to know that coinmarkepcap have something like this today
it becomes really hard before to look at which coin have the real volume some of them is manipulated to attract investor.

Yes, seem like CMC have a new algorithm for calculating trading volume. Sad but the truth is that the liquidity of the crypto market as reported by CMC is still very low, only a few hundred million USD. There are too many low liquidity exchanges and I was quite surprised when Hitbtc was at the current number 1 position.

It is not only about the exchanges but the coins too. Knowing the fake ones is no more going to be a difficult task. This is the most important thing for investors. Most of them get fooled by scams and lose a lot. Apart from that, the developer team will be able to focus on improving the project. CMC is the most trustworthy place at present which can help with taking right decisions. Binance is the first choice of traders indeed.

For me this is just the first step towards clearing the space of most of these useless tokens and exchanges, when you see a coin/tokens valued $20 million and have just liquidity of $140k then thee is a serious problem, the reason most people still use BTC and Tether most is because of the liquidity, you want to be able to get in and out of a trade at will

I really like your point here, it's high time we started seeing reputable DEXes as the future exchanges. Presently ranking based on liquidity, the DEXes will be far down the list since many traders prefer centralized exchanges, not knowing that if we all decide to use more of decentralized exchanges the crypto sphere will make much sense. I keep wondering when trading volumes will spike for DEXes, this might take time anyway.

Just the very way cryptocurrency enthusiasts want it. Its time to separate the seeds from the chaffs and thankfully coinmarketcap.com has helped us in this regards. Many times exchanges like Latoken, Hotbit and P2Pb2b exchanges has ranked top based on adjusted volume manipulated by wash trading but now we can look through the liquidity table and get a clearer decision

By knowing the real liquidity, we will know which exchangers are good for trading. Many people think some exchangers have large transaction volumes but they use bots. This can be used for price manipulation and I think by knowing the real liquidity, investors will be more confident in their investment

Binance DEX like other DEX such as Etherdelta or Forkdelta, totally decentralized and different with Binance CEX. They don't use bot or have market makers, that's why its trading volume is very low like other DEX.

What I would say here - nothing depends on one components only. What basically makes sense - complex approach towards token and solution analysis. And I am sure that only such strategy leads to right decisions, while choosing the token

Hello there. You know, I would definitely agree with you on your statement. What is important as well - the practical value. Kinda you must be having understanding of why you are using the platform, how it simplifies your life and else

Very rational. I am adding innovations, roadmap, team experience and milestones - formula for a great platform. By the way, are you having any that fully meet your requirements? Many such?

Oh, good question. Nope, I cannot say that there are many - only 2 or 3 most interesting ones. But to be honest, the most advanced solution (and my latest discovery at the same time) is MorCrypto Exchange. What I am really impressed with here - entirely new and innovative approach. In few words, MorCrypto is a cryptocurrency trading exchange of high level. And team is also working at building a cryptocurrency e-commerce platform, a professional sports gaming app and a cryptocurrency mining farm powered by their base coin MOR. So entire ecosystem, you know. I recommend you to have a closer look at the Website, to start with, cause the platform is in pretty high demand and having high ratings. Just Google them

More than impressing, thank you very much for your recommendation here. I will have a closer look at what solutions stays for and get back with own thoughts afterwards. But you know, it seems that I have already heard of MorCrypto from someone. So far so good, again :)

I believe that this feature is very useful, since sites that are analogous to coinmarketcap have the same ratings, but since these sites are not very popular, I can’t trust them as much as coinmarketcap, now, before making a deposit, I constantly check the real volumes . But just recently, I did not understand why, for some coins, the binance exchange lags behind other less popular exchanges. Now I am armed with this information! )

Man, I think you don’t have to be critical. Sites that are analogous to coinmarketcap are even better in most cases. I think that just everyone is already used to it and do not notice more worthy competitors, perhaps you are right about the rating of real volumes, but at the expense of everything else, you should think and maybe you will find a more worthy replacement among the heap of rubbish.

Should projects like them immediately be handled so that the trader does not get stuck on their fake volume and suffered losses there.
Liquidity is indeed tempting because trades are done short and make a quick profit but if there are still projects like those that make a fake ready volume we will get a loss.

By knowing the data about real liquidity in the exchanger, we can make the right decision where a good place to trade. Liquidity in trading is essential and I think with the ranking of liquidity exchangers, investors will better understand exchangers who have a good reputation

Yeah for sure. It's definitely a better reformed way of measuring which exchanges are the best and which exchanges are worse, while filtering out the exchanges which have pumped up volumes due to wash trading or other unscrupulous methods.

However, i've seen articles that essentially abuse these statistics and take them out of context to say "oh, BTC markets have a shockingly low total liquidity".

But that is purely a misconception. Liquidity of the orderbooks does not represent how much money is willing and able to demand BTC at this very moment, which should be the definition for liquidity.

There's still a ton of exchanges on that list near the top that likely manipulate their trading volume like MXC, Coinex and P2PB2B, and it's certainly possible in the future that exchanges could even start faking orderbook depth, though it's at least something new and perhaps harder for 'em to fake than just volume.

I also hope alt devs are considering more than just liquidity or volume as a deciding factor for which exchanges their coins and tokens are listed on; there's plenty of reputable altcoin exchanges out there that aren't listed on this list of exchanges by liquidity, and a number of the exchanges are somewhat questionable in their reputability too.

This is another metric which is important to take into account if you are a developer seeking an exchange to list your coin or token on, but also ensure it has a good reputation and negotiate the listing fee as some can be very unreasonable depending on market conditions