Why you should reconsider buying low liquidity tokens

in hive-167922 •  14 days ago 

There are many tokens in the market that have very low liquidity but super huge market cap. The main problem with this is that it is very hard to estimate and value these tokens accurately. You need to have a large number of people buying a token in order for it to have value.

If 10 or so people are buying and selling a token with 10k volume, it probably isn't wise to buy that. Cause even if it gets a large mcap, it won't last when those people stop trading it. And market manipulation is a thing you should be aware of.

Many early crypto investors make the mistake of buying such shitcoins. I won't deny that I have never brought them. I have burned 100s of dollars when I joined early and bitcoin pumped to 19k. I think you won't learn some things until you have actually lost money making those mistakes.

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