Alts with no liquidity on exchanges

[binhvo1505]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

The fake volume tokens are all dead tokens. Projects or goals are dead so there are no buyers. There will be no good projects without buyers. So, for tokens or alts with a volume of less than $ 5k, they are fraudulent organizations and you absolutely should not invest.

[naomi-the-cat]

Tokens without liqiuidity should be delitsted from exchanges. Almost all of them are dead useless projects

[novaprime]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Yes most of those volumes are fake. Even in past there were many exchanges found guilty of falsifying their daily trading volume and this affects users a lot. Many a times when I was new in Crypto I used to buy coins for arbitrage, but on many exchanges I wasn't able to sell the coins that I brought and this made me lose money many a times,because when I transfered my coins to the exchange with a high price then those were unable to sell just because of no demand at all for those coins.

Agree. Most coins listed at regular exchanges use fake trading volumes and cannot be liquidated if you want to sell. I think this is the case that anyone will encounter when investing so it is best to learn that exchange before deciding to invest because the risk may come to you at any time. Of course shitcoin investing will only make you more losses during this time.

[btcdie]

In fact the main factor comes from manipulation, in fact this is just a game of top people, trying to play with no liquidity and entice interested people like OP. I am surprised by all that, sometimes someone is fooled by seeing a large volume, even though it is fake. platforms such as CMC are very good, but I think it is necessary to deal specifically with manipulated volumes, which often happens on low-reputation exchanges.

[umbara ardian]

Daily volume comes from total transactions that happened on the exchange, and the transaction itself comes from liquidity. If the token or the coin has a big daily volume but they do not have liquidity that means they were using a fake volume to boost their ranking.
No liquidity = No demand.
Is it worth to invest in it? personally I do not think so, but that is my choice. You might have a different opinion about it.

I totally agree with you. Never invest in altcoins without liquidity and demand. Its price will certainly not go up without the attention of the community

[kapalmabur]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

most exchanges do have fake volumes, it is clear, even though they have 24-hour volumes but there is no liquidity,
you must be careful when trading because manipulation is easy to do

[mrdeposit]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

It depends on the project itself. In fact, although this is not the case we face every day, liquidity may drop due to some unexpected problems. It is worth a try if you come across a project like this. But usually liquidity is the best indicator of demand and supply, and when it is low, there is no demand. Always be careful with undesirable projects, as you are more likely to lose.

[Javi_Anibarro]

But it would be difficult to be sure about it as people might be withdrawing it. For example no one would put a stacking coin in an exchange that does not provide the staking reward. But mostly they are the fake volume coins being bought and sold just to increase the trading volume so that they could come in spotlight.

It is not difficult to figure it out, check the spread on the exchanges and comparing it with its total volume.
A project that has a good volume usually will not have a big gap between the orders.

[Zdraste16]

Choosing an altcoin for investment.  You look at how a given asset behaves in what period.  If everything is really as you noticed, there is volume and there is no liquidity, that is, concerns for investing in such a coin or token.  Such moments in behavior may not be noticed by everyone and for this reason they will lose money at the place of profit.

[Paulinerims]

Investing in new projects that are listed on Hitbtc, binance and Kucoin as I found out they are the most stable as in liquidity on the exchange. Lets see whats turns out.

[BChydro]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

If you are taking the volumes showed by coinmarketcap then good luck to you as you might not even see any liquidity if you are planning to trade in the exchange and it is a fact that all of the exchanges in the market gives out fake volumes and if you are investing in those shitcoins then you will be a bag holder, my advice is to not waste your time and money taking your chance by investing in shit coins.

[ableh]

Sorry for #OOT
I wonder why Digifinex can be in 7th position based on liquidity? whereas most transactions that occur in this exchange are carried out by bots. Can anyone explain here?

[joshy23]

Choosing an altcoin for investment.  You look at how a given asset behaves in what period.  If everything is really as you noticed, there is volume and there is no liquidity, that is, concerns for investing in such a coin or token.  Such moments in behavior may not be noticed by everyone and for this reason they will lose money at the place of profit.

It will lose value in the long run, if there's no one who will support and invest the coin for their trading activities. There's a need for everyone
to be careful with coins that is not moving as the chance that it will be dumped when you invest is always possible to happen. Pumped group
or the scam developers are waiting to runaway your money.

[Bonenx14]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

In 90% of cases, the answer is yes. CMC only shows the analyzed data from the API of exchanges for specific pairs. If the exchange uses the trading bot which buys/sells and adds fake order to the order book, the average daily volume will be above the other listed exchanges. In order to avoid, the trader should do own research before thinking about the trading there.

yes because if they ask for transaction data manually it will be more difficult but can see the original transaction or only bot. in addition, the exchanges have their own systems and they are sure to maintain their data, for integration only uses the API

[Rick-C-137]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Most if not all newer tokens/coins have no use-ability. They are un-spendable. Even if the toke/coin is tied to a project that actually has a product that has a use case.

I will be so bold as to make another statement. Most if not all crypto assets from the start of bitcoin itself have ZERO demand or are able to be spent on anything other than trading out for BTC.

More and more. I am seeing bitcoin as a sort of stablecoin. I know crazy to put the word stable in the same sentence as BTC. Hear me out. I truly think a day will arrive sometime in the future where Bitcoin is so stable. It will be the stablecoin like we are seeing today. In the vision of the future i see. BITCOIN will be the only factor every other crypto token/coin will be priced by. Fiats or their value will have no input any crypto value.

[alrose]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Personally, I use another service to determine the real liquidity.If you want You can test this service and compare with CMC: https://messari.io/screener

[tenakha]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Personally, I use another service to determine the real liquidity.If you want You can test this service and compare with CMC: https://messari.io/screener

We all used to look for other alternatives, but after CMC's last update, it did not need to. Even if the volume is fake, it is possible to understand this by looking at the liquidity.

The site you suggest displays that the BTC's "real volume" is only 134 million, while this figure is 15 billion in CMC. Perhaps, the figures in CMC are exaggerated, but it can not be that much difference. How is "real volume" calculated in Messari?

[arimamib]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Personally, I use another service to determine the real liquidity.If you want You can test this service and compare with CMC: https://messari.io/screener

We all used to look for other alternatives, but after CMC's last update, it did not need to. Even if the volume is fake, it is possible to understand this by looking at the liquidity.

The site you suggest displays that the BTC's "real volume" is only 134 million, while this figure is 15 billion in CMC. Perhaps, the figures in CMC are exaggerated, but it can not be that much difference. How is "real volume" calculated in Messari?

when talking with data manipulation may always be there, but at least we have a place that can be trusted that the data is really real there. CMC is currently a lot of doubt in terms of volume, but what about the site that he provides to do data collection. now we have to be really careful for many things that can be manipulated if possible

[romanij]

Most likely, the investment in such coins is a failure. Mike Novogratz very much lost his assets after believing in such coins. That is, his fund is almost completely ruined. Today it is very easy to create fictitious volumes and for cryptocurrency exchanges this is not a problem. And once the Novogratz failed to make a profit with these coins I think you have no chance.

[gundala]

Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.

Yes, transaction volume affects liquidity, in addition to that trading frequency and transaction value also affect. So it can be ascertained if the trading volume is high while the liquidity is low then it could be that the volume is fake. Current prices can also be manipulated, it seems like bots play a role here. This is very uncomfortable if used for trading, maybe only for hit and run.