Don't just focus on the price rise and fall of alts; Liquidity is the real iceberg hidden beneath the surface.
I usually use the 30-day average trading volume as a reference: if it lingers around the hundreds of thousands of dollars for a long time, it’s time to be cautious—this coin is either because the market makers have withdrawn or only speculative funds are playing a game of passing the parcel. Even if there is a sudden rise, it often proves to be fleeting and difficult to sustain.
My experience is to try to filter those assets with a 30-day average daily spot trading volume of over 5 million USD. Active trading not only indicates that funds are still flowing, but also means that market makers are still maintaining the market. When these coins rise, they have more support, and when they fall, they are more resilient than low liquidity coins.
It might be useful to reassess your holdings using this standard: which ones are worth a long-term commitment and which ones are only suitable for quick in-and-out trading; the answers will be much clearer.
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Don't just focus on the price rise and fall of alts; Liquidity is the real iceberg hidden beneath the surface.
I usually use the 30-day average trading volume as a reference: if it lingers around the hundreds of thousands of dollars for a long time, it’s time to be cautious—this coin is either because the market makers have withdrawn or only speculative funds are playing a game of passing the parcel. Even if there is a sudden rise, it often proves to be fleeting and difficult to sustain.
My experience is to try to filter those assets with a 30-day average daily spot trading volume of over 5 million USD. Active trading not only indicates that funds are still flowing, but also means that market makers are still maintaining the market. When these coins rise, they have more support, and when they fall, they are more resilient than low liquidity coins.
It might be useful to reassess your holdings using this standard: which ones are worth a long-term commitment and which ones are only suitable for quick in-and-out trading; the answers will be much clearer.
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