Check Liquidity Before you invest

[mbakruroh]

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.

[VDraci]

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

[joinfree]

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.

[maxreish]

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.

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.

[CuriousGeorge]

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

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.

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.

[nennanem]

Checking the liquidity is a good recommendation. Of course, there are more things 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.

[pankaj1234]

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.

[hirngespenst]

Checking the liquidity is a good recommendation. Of course, there are more things 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.

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.

[imstillthebest]

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   .

[Kelvinid]

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.

[wedosgibas]

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.

[gaston castano]

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.

[masterrex]

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.                                                                                                                                                                                                                

[Damjay101]

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.

[Goodvalony]

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.

[TheClownSong]

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

[alg0mizer]

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

[semobo]

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.

[Kellyhandsom]

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.

[Furryball]

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