Many traders focus on the price, but forget a very important factor:
Liquidity
So, what does liquidity mean?
Simply put: it's your ability to buy or sell an asset quickly without significantly affecting its price.
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Why is liquidity important?
1. Quick entry and exit:
If you entered a coin and couldn't sell when you wanted, the market is actually dead.
2. Less manipulation:
High liquidity makes it harder for whales to manipulate the price excessively.
3. The price difference between buy and sell (Spread) is small:
And this is a positive sign of real trading activity.
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How do you know if the market really has liquidity?
Look at the daily trading volume compared to the market cap of the coin
Follow the depth of the Order Book
Monitor the number of available pairs and interest from major platforms
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Summary:
Don't be fooled by the prices... the fake market looks like the real one from a distance, but liquidity reveals the truth.
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