Bitcoin Forum

It seems like altcoin is having a good pump lately, many of the shitcoin has started to gain 100%  ;D
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.

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.

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".

Investing only in BTC is a good approach to minimize risk because BTC has liquidity all the time. But investing in altcoin has benefit as well although there are high risk. People with proper knowledge in trading can easily accumulate BTC through investimg in altcoin. I am not much expert. I have been studying some altcoin projects for couple of weeks. The goal is to invest some of my BTC and accumulate as much as possible. I guess that's not bad for your portfolio. Well, I agree that newbie must not get into these things without proper knowledge.

Guys, if you thinking about investing in a coin which doesn't have liquid, you are doing something very wrong. Stop, study and startover.

Low liquid means that  nobody wants to buy or sell this coin. It really has no value. There is no reason to buy it.

I believe new comers should never invest in a coin which is not at least in top 200 on CMC, unless if it is an ICO.

Top 200 CMC is already full of shitcoins, but all of them have a decent liquid (as far as i know), are somewhat known project but are most of them small caps.

Most of them will fail in the long run.... but not all (probably)

Low liquidity won't help investors earn decent money. I even know a project where there are investors. The project's token are listed in an exchange and not much trade are going on but still there are still people who buy and sell their tokens but for a very low price you can imagine.

True words... Low liquidity is a gamble, but a high paying one if you're willing to go that route.

XSN, which is a low marketcap coin doesn't have a HUGE liquidity, BUT has enourmous potential in terms of market adoption, since one of their main goals is to make crypto easier for everyone to transact with.
A good example is their Lightning based DEX, which will be controlled by masternodes, hosting Lighting channels, hubs, and who will do all the "dirty work" in the backend. Everyone who wants to use their DEX, can trade near instantly, with next to 0 fees, and without syncing with any networks, doing KYC, or anything else for that matter.

Does low liquidity on XSN make it a bad investment? Absolutely not! The DEX itself will open the doors to a LOT of new traders, but overall, I agree to stay away from most projects with next to 0 volume.

Almost all the new coins and tokens launched in last 2 years are suffering in liquidity some are even suffering for listing on an exchange, the situation was very bad, now with improving market i think conditions for new projects will improve as well, some good new projects that i thought wwere under pressure just because of bearish market have high chance of waking up and improve their market.

Usefull topic! :)
You are right about the scams, those guys have ways that we don't even dream of... and we'll never realise we were scammed...
Checking liquidity is a good method to decrease the probability of being scammed, as at least there is a healthy market to liquidate your invested when you need to... but beware, there are a lot of ghost buy orders too...

Hello everyone. I would say that there is huge variety of different solutions coming onto the market, so I am here with the strategy I personally use. In my opinion, mine is pretty rational and can help to find the most advanced solutions

Evening. I agree that there are many aspects that matter. And I am not only talking about the idea as the idea, but much more about complex approach. So curious to hear your views

Basically, mine is the pretty complex - I am starting with the niche. For example, talking about me, I am fond of different progressive IT solutions for automative industry. After the niche is chosen, I have a look at the solutions that are having the highest ratings along with real feedback from users. And then I am also evaluating things on my own, paying attention to team, opportunities and more

Hmm, definitely interesting and rational strategy. And are there many examples of such solutions you have in mind? Any you can recommend?

The most advanced one I am aware of is Carnomaly - team is setting entirely new standards on the market. In few words, Carnomaly will become the first company ever to offer a worldwide rebate for an automotive purchase. Both new and used vehicles will apply, as long as they are purchased from a verified legal dealer anywhere in the world. Upon completion of our consumer platform, Carnomaly will begin buying back tokens to replenish the rebates for years to come. Of course, there are much more benefits, what I recommend you to have a look at - their website. A lot of useful info is available there, have a look

Great, thank you for the recommendation! Will have a look

It is very sad that this is exactly what is happening to 99.9% of all the coin that are newly listed. After few days of pump and dump when listed on exchange, then the token will become useless and the volume in trading will continue to drop until there is little or nobody trading the coin again and this is always the time in which just few dollars in buy order can have influence on the price of the token but when you check the trading volume, you will realized d price is nothing

I do not think you can blame developers for their tokens not having real liquidity, there are some good projects in the space that suffered because  they were listed o 2nd to 3rd tiers exchanges. The problem is with exchanges rather than the project, most of these exchanges lacks liquidity though there are some tokens also on Binance that have this issue

Thanks for this, some persons don't check the liquidity of the market all they do is to just check the percentage gain as reported by CMC and they just FOMO to buy a dead coin. Even if a project has good liquidity in a shitty exchange, I won't buy regardless of the gain, the developers and shitty exchange could fake anything. I have decided to be trading on Binance since the beginning of this year and have been getting some good result that pays my daily bill.

exchanges and projects have correlation, usually tier 2 or tier 3 exchanges will allowed projects to list in their exchanges easily. meanwhile in big exchanges such as binance or huobi, they will carefully filtered project quality. for example , in binance global group they regularly held AMA with projects that will join in community voting. its usefull to to traders or investors about projects. so if dev team could not bring their token in big exchanges, we must doubt and blame them about project quality.

You are mixing some things which I didn't mean here. I have tried to highlight the point that this type of changes can be a kind of trap which can deceive you, it may look like normal to a newbie but behind the scene, it is a well planned scam.

Yes, please run if you have a good and different solution to come to the market, if it can help you, it will be very good if you want to share the solution here, because I am sure, many people who need sophisticated solutions.

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.

Obviously we always need yo check the liquidity of each coin in which we can visualize what would probably be going the coin after the year in which you will be able to think if this coin that you are holding will be easy to sell or trade in no time so that you will not have any problem if you will be able to sell it already. Liquidity and volume are the one who we are based in order to know if the coin is good enough to hold or not.

Liquidity is one of the most important properties of a coin. I already saw how people bought a very large number of shitcoins and simply they could not sell the volumes that they had in their wallets because people did not buy in such quantities. if the trading volume of the coin is $ 100 per day, then it is probably better to avoid it. what is the point of its pump if there is no opportunity to sell

Good advice, any coin with very high liquidity means it has high demand but newbies should stay away from coinmarketcap,they can't be trusted since they start rating using liquidity they still share fake info for users,

True, but if the beginners can find out where the original liquidity is and where the fake liquidity is, then you don't have to stay away from the coinmarketcap site, only the average beginner doesn't know that, so many are stuck with fake liquidity.

If beginners can invest in the top 100 coins from coinmarketcap, and they can analyze one by one of the coin, they will find which coin that has good movements and liquidity at the market. We can compare the data from coinmarketcap and the exchange while we can research more to find the coin so, from that data, we can get one or more coins to buy. Don't try to buy the coin which has low volume because that coin will not move in a short time because there are not many buyers who have to interest in buying that coin.

I think people should avoid being traped. Some shit project is taking this like an advantage. People will be traped by holding those coins. This bull run will not run forever so people will lose money if they invest in any shitcoin by seeing the price up. Crypto market is in a bull run so the shit project will show price increase even they have very little volume in trade.

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.

Great advice and everyone should follow this from now to always. We have to stand against the exchange's fake volume. Many coins pumped suddenly with a higher trading volume but when you go for selling you will see people put buy order way below than market price! Exchanges like ZB, BW, Coinbene, Coinall, Digifinex does this mostly. So, everyone should research the coin's liquidity before investing!

Depends most coins Ive traded are only major coins. I dont want to go outside trading these top 20 highest volume on CMC yet. Why? Cause altcoins are very dangerous when you knew that the volume is currently manipulated by whales.


If you used Binance you can spot some coins that move up or down inversely proportional to the other coins. As you can noticed most gainers and losers on binance different everyday. I dont know how is this possible but it seems there's a whale on their system that constantly rotate funds for market maker to exhibit volume of different coins. I'm not accusing them of manipulation but there must be someone right.

Checking of liquidity, or the ability of an asset to be turned into cash, is one of the primary assessment in making investments. Evaluation of potentials of a coin to produce profit must be done first and the investor's comfort zone on taking risk. Of course, if you are too unsure about a particular investment decision that should not be pushed through. And as there is diverse type of coins in the market nowadays, I think having right mix of different potential profit-producing coins would lessen the risk of losing everything.

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.

This is certainly good advice for newbies, and I suspect many of them might not even know what liquidity is if they're just getting into trading.  Owning a coin doesn't do you much good if you're unable to sell it because there's no market for it.

My understanding is that coinmarketcap just added that liquidity metric, and I think that's a good idea.  You can't trust exchanges to provide correct, truthful information to cmc and that's unfortunate.

Yes, this is one of the most important things to be noticed before investing into any coin. There are a lot of coins which are having pump but if we check on their liquidity, we can see minimum buy orders but a lot of sell orders. These kinds of coins usually end up being dead coins ahead with no demand but a number of people are already waiting to sell their coins at any price. None of us would ever want to invest in such coin and hence liquidity term can be most useful for us in this case.

I personally only go for coins which has high liquidity because it gives me the ease to sell or shift onto any other coin anytime. Also never go for any exchange which might show you immense benefits but is new in the market as these kinds of exchanges might only have the intention to scam you and nothing else.

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.

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

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.

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  ;)

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.

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.

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.

He has to know that, It is always better to invest in a coin having high liquidity. For example, if you invest in a coin that has low liquidity, and someday in the future the price rises really high and you make a huge profit out of it, but there is barely any buyer to buy your coin. So in this situation, the profit you made comes to no good. On the contrary, if you invest in a highly liquid coin, even if you make a small profit, you can cash it out any given time. So it is always better to invest in coins having high liquidity.

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.

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.

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.

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.

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.

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.

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.

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  :).

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?

I agree with your reasoning. Liquidity is very important for trading and for investing in coins. I always check the liquidity before buying.

Also consider the number of different exchanges with active trading pairs for the altcoins that you're looking to invest in. There's always the potential of price manipulation and/or a misrepresented price if the coin you want to invest in is only actively traded on one or two exchanges, and those exchanges might also have policies in place that push the price of the altcoin to where it is, such as the trading fees or the withdrawal fees on the exchange.

Exchanges go offline through hacks or even a simple exit scam very often too, not to mention some exchanges simply lose popularity and thus trading volume over time as well. You should also always remember to keep as much of your funds as possible off-exchange for security purposes.

There are times that the team ofcertain projects, in order to keep up with the price of their coin, at least at a certain range, try to by themselves provide enough liquidity of such exchange. With that liquid, The can easily place buy and sell order. So, they are ready to buy what you are coming to sell and at the same time, they are ready to sell to you.

Personally, I believe that the entire crypto market is speculative. Especially coins associated with IEO on large exchanges.
But I agree with you that the top coins at least have a decent level of liquidity that compensates for their speculative nature.
Alas, many people ignore this moment when they make decisions about investing in a particular coin.

If the coin has good liquidity, you will certainly be easier to trade and the trading volume will also greatly affect the performance of that coin. I think the market is risky and not all coins are stable for you to choose to trade. In fact, I only participate in exchanges with high liquidity like Binance because this is where there are many good projects.

Now with high liquidity, especially with a coin rate of 100 and above is the best coin because they have a large trade, meaning there are still many who believe in the coin.
IEO in large exchanges is always included in the top coin rankings and that has been happening a lot there now they continue to struggle to increase liquidity in the market to remain large in its trading volume.

things like this that are often ignored by some people, about liquidity in a crypto. a few days ago one of the members created a thread that contained his frustration with altcoin and now is the year of shitcoin.
in the altcoin market many if the manipulation of prices, the token, to manipulate the token market is often the case and it can manipulate the level of liquidity. so be careful to invest or trade and use all aspects to see crypto.

Before sell my crypto I always check value and volume in every exchanges that have potential chance to sell, don't care they old or new just check their services. Every crypto activity will end with currency and we need liquidity, next step about send into our wallet/ bank can be compromise. Good advice for use and never forget about fees, in this part sometimes we can't withdraw because too high.

Even exchanges lies about liquidity this days, I don't trust anything that offers people/traders charts to begin with, look at coinmarketcap still giving exchanges with fake volume good rating using Liquidity search

That's very true @OP lol. Liquity is one of the key factors that you should consider before investing or trading any coin. Also, i think you should also look at the volume of the coin actually. Let's say it's 24-hour volume to weekly volume so that you can ascertain whether there is a regular market for this coin and not a pump and dump scheme from the team of the project lol.

This is actually true. I have been a crypto trader but I preferred being a long term trader/ a holder of bitcoin. I have proven the good ROI and profits from that. But still, I do am not discouraging an investor to try out some potential altcoins. There are still worth to invest altcoins to try. Just be wise on choosing which coin to buy since majority of altcoins aren't that good to hold.

Another important thing when the liquidity of token will be represented how trusted the token is. Liquidity is a demand for the token and that will give us more protection from the scam project as scam project will have very small liquidity or it will always zero liquidity.

Checking the liquidity is a good recommendation. Of course, there are more things (https://cryptogeek.info/en/blog/5-things-to-consider-when-choosing-an-altcoin-for-investment-in-2019) to consider when trading or choosing the altcoin for "investment" and these recommendations are known and they can be found here and there on the Internet. I think it's important to hold these things in mind while trading.

Liquidity has best role to play in trading but there are so many scam exchange show false liquidity.liquidity of a token is taking more attention of community towards that token. It is very important to look at liquidity on exchanges then invest you will be in safe pairs of hand and your money will not lost too early.
You can also see the coin data on coincapmarkets.Liquidity is a demand for the token and that will give us more protection from the scam project as scam project will have very small liquidity or it will always zero liquidity.

I think who trades regularly they already know about the fake volume coins and exchanges! The fact is newbie fall in these traps, they see the high volume, good rank in CMC and they fall in the trap and buy that coin! So, every new investor should buy the top tier coins for the gathering experience and when they will have a certain idea about the crypto world, they should follow these recommendations before buying a coin.

whenever i invest i go for the best . its already given that the best coins have a great liquidity am i right? its because many people are already hunting for these coins  . they buy and trade it more often compare to coins that arent good enough   . so in short im saying that i dont check the liquidity but at least i have my own edge or i have my own style when picking up a coin although its not really that original because i heard many peeps also have this strat before they start picking a coin   .

And we can't deny that those coins that have huge liquidity in the market are more profitable than those who have not. Of course, and in practicality matter, investors will surely pick among them and so do I. And this is important to measure how a certain coin/s having a chance to move high or getting lost from the market competition. Choosing the right coin for investment will bring a better future of our trades and considering those coins that have high liquidity is the best thing we have to do.

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.

I see it from the type of coins you hold, if your coin is not shitcoin it will not interfere, and most exchanges may have a list of your coins such as eth and btc. Almost all markets have these pairs.
so also pay attention to the coins you hold, not only from the exchange.

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.                                                                                                                                                                                                                

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.

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.

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

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

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.

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.

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.

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

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.

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.

In fact, now we see or differentiate crypto exchanges that can influence, such as Binance, Kucoin, OKex, Upbit, Bithumb and several others. And others are still a lot of exchanges, but not quite influential, because users only come and go, even though their service looks good.

Liquidity always prone with wrong information or can be manipulate by trading exchange and developers, bots are easily being injected to attract
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.

Agree with you mate, trade crypto is not like couple years ago, today you can loose lot money on trading if you are not good trader, better to hold your coin and make profit!

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.

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.

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.

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?

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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? ;D

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.

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.

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 .

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.

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?  :D ::)

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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?

And then there are the projects that don't get enough attention because they don't do huge marketing campaigns with tons a FOMO.

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.

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.

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.