Check Liquidity Before you invest

[ttcsalam]

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.

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[zaim7413]

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.

[Malam90]

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.

[BlackboardTrade524]

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.

[DrawAthens031]

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.

[bitbollo]

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.

[SolarWindMiningCompany]

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.

[kindbtc]

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.

[cytpoway121]

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

[charlie137]

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?

[nikki4]

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

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.

[sangjoewara]

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.

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.

[DrawAthens031]

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 .

[Bonwin]

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.

[timmmers]

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? 

[zuziekatee]

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.

[BeginToMine]

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.

[HunterUnchained]

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.

[Crypto_lion]

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.

[Genemind]

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.