Check Liquidity Before you invest

[Lantind]

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

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.

[nicolas1979]

SO, when you are going to invest in a coin, check the liquidity of that coin for a certain period. Otherwise, don't invest.

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.

[alexsandria]

SO, when you are going to invest in a coin, check the liquidity of that coin for a certain period. Otherwise, don't invest.

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.

[Thomas-s]

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

[Samayuki]

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,

[memed97]

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.

[maydna]

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.

[istiak2277]

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.

[GreenStox]

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.

[thisnewcoin]

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!

[minairia3]

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.

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 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.

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.

[joeperry]

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.

[BitTraderCute]

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.

[Pearls Before Swine]

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.

[darewaller]

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.

[bison]

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.

[thottum]

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

[Kelvinid]

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.

[fuer44]

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 

[TheGreatPython]

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.