Alts with no liquidity on exchanges

[Coroline]

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.

I don't think it's worth investing in coins or tokens that don't have liquidity because too many fake transactions are made to fool investors so don't get fooled and if you choose to invest, choose tokens that already have big names and are in large exchanges.

[zenhu]

Just ignore those coins with fake volume, i think that is already manipulated, how can many transaction without exchange to liquidity. Let focus on real project that stil running and have the futures in it. Many tokens in exchange with big potential, just choose one of them to invest.

[yulionoo]

if the coins do not have liquidity I think is not feasible to be made an investment tool. some people recommend investing in coins that have a high trading volume. trading volume does not guarantee that the coin is worth the investment because trading volume can be manipulated by bots. so if we are going to invest in crypto then choose coins that have liquidity and a large community

[SabrinaBianka]

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.

You know bitcoin does not have liquidity but look that coin lots of volumes, its always depending on the technologies, progress, exposure, use cases, long term plan it is always basic and do not think always easy thing that turns into hard thing.

[ajiz138]

Don't believe in large volumes before you check directly. Volume can be manipulated very easily. Many altcoins have large volumes, but when they want to make transactions it will be very difficult.
I have come across a lot of fake volumes of altcoin which only aims to attract investors to buy their coins.

And many exchange doing that fake volume right now and a chance that there will be traders that will stuck at that coins. The better solution if this project has real liquidity is check every social media channel of that coins and look if there are really a community supporting it.

But scammers also have a large community to manipulate everything on the telegram channel. They have a paid community with a channel group that has tens of thousands of members. They will delete every comment that always asks "when exchange" "when distribution" is a question they cannot explain.

[cryptonewbie]

With liquidity, it becomes easier to trade and use indicators when trading for better possibility of gaining profit. Many alts have poor liquidity simple because there are little or no buy orders for the coins. Its not a smart idea to buy these coins but if you are one for taking risks, then by all means, go ahead and bag some. I have seen rare situations where coins with low liquidity moon over a period of time

[Bonenx14]

With liquidity, it becomes easier to trade and use indicators when trading for better possibility of gaining profit. Many alts have poor liquidity simple because there are little or no buy orders for the coins. Its not a smart idea to buy these coins but if you are one for taking risks, then by all means, go ahead and bag some. I have seen rare situations where coins with low liquidity moon over a period of time

the question that needs to be asked is whether the indicator really displays pure volume? so if you want to use an indicator you need to know the purity of the volume inside. there is no harm in using the most important indicator you can find out the indicator really displays the original volume

[oktana]

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.

I don't think it's worth investing in coins or tokens that don't have liquidity because too many fake transactions are made to fool investors so don't get fooled and if you choose to invest, choose tokens that already have big names and are in large exchanges.

Imo, that indicator is a reminder for traders not to be trapped.

I often read coins with the same typical type on the telegram channel, and most of them refer to coingecko. after I check, the coin gets stuck at the highest price, or even immediately falls in less than a day. liquidity is very important or we are suddenly forced to become confused holders.

[max6575]

developer might works on decision as complying with tasks of finance as extending manage as delivering use of goods with product and service for public of audience and offering release with uses on notable as seeds of value with business intelligence on investors to work with the measure on works of investment.

[TheClownSong]

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.

Coins or tokens that don't have liquidity, I think are not good investments. In my opinion, one indicator of an investment is said to be safe is to have a large liquidity and is also actively traded in the market.

[pamsugas]

no.. very dangerous if investing alt liquidity on exchanges, there are lots of good alt listed on the popular and trusted list. I guarantee alt liquidity on exchanges is a scam I have found even though large volumes, but it is only manipulation to dance traders and investors

[ttcsalam]

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.

I agree with your topic. I have seen a few coins that do not have any trade. It is doing good volume here. So the exchange saw no trade.

[biddicoin]

According to Investopedia [1]

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.

To make sure we are all on the exact page. Anyway, most traders want to trade coins that are liquid so that it could be easily converted and be sold in almost an instant so they could profit quickly. When it comes to different kinds of tokens, there are a lot which has no liquidity at all, so would you still trade it? You might lose your investment with one trade. I doubt someone would want to do that to himself.

So for me, I wouldn't invest in those kinds of tokens, especially when the volume is fake.

convert to cash depends how much capital is, if we use high capital, the liquidity is a must
if using low capital, low liquidity isnt a problem as long as still having liquidity (not no liquidity at all)

so, i think it is subjective, in other word, there is chance to get profit for traders/ investors
we have to consider that most of low liquid coin is pump and dump so can get big return if we have good strategy.

[Nguyenthanh2391]

Currently, Alts has no liquidity on the exchanges. I think this token is not worth investing in. That's it, almost everything is fake.

[yangongear]

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, you need to see their real liquidity, to appreciate that coin. If a coin has a large community as well as many investors interested in it, it will have great liquidity. On the contrary, it is just fake volume to attract traders to buy that coin.

[superstrength]

Without liquidity, I think it's not worth investing in this token. altcoin has no liquidity on the exchanges. This is unfortunate. 

[jameshugo17]

This market is unregulated. Rumors spread very easily. Unfortunately, fraud is very easy. However, as a community, if we talk about them here, we can prevent them. Coinmarketcap has become a monopoly. There's an alternative system. Easy to manipulate a single place!

[poornamelessme]

Probably not the wisest move to invest in coins with little no liquidity. One exception may be for newer coins with both low volume and low liquidity, as perhaps as time goes on both will pick up. But if you see high volume + low liquidity, you know the numbers are faked. The sad thing is that even for 'good' coins we see a lot of wash trading.

[beerlover]

I don't really even know what could altcoins with no volume could do, like if we want decentralization then do we want the team to be involved too much on the token or the coin? I mean if you are an investor, you want your coin you invested to be more decentralized and you want the team to take their hands out of your coin after a while.

I could invest and help fund a coin but then I want the team to build something amazing and leave it be, if the team doesn't leave it be then whats the point of a coin that constantly gets new builds from a team that basically could change the coin however they want? Think about bitcoin that way, what if satoshi kept on changing bitcoin constantly? Do you think people would like that? So, when a coin has no volume at all, maybe its time for it to die slowly instead of hoping the team to do something about it.

[Firefoxx]

Any Altcoin without liquidity is as good as nothing and most are generated through IEOs so it's best to regulate the market and end these projects without real team and use cases.