RE: Top-Ten Guidelines For Crypto
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Can I add an 11th one perhaps?
Rule #11 Check the market liquidity:
When you buy any digital asset for the shorter term, make sure you check the depth of the market and the spread between buying and selling price. Big projects frequently come with more market depth than small ones, and currencies often come with more market depth than dedicated tokens, and those in turn tend to come with more market depth than NFTs. But exceptions are always there so make sure you actually check the trading market for your asset of interest.
The last thing you want to happen is for the price to spike, but then being unable to take profit because the spread became huge and selling your assets with a huge discount, a huge delay, or both (!).
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liquidity is a good one.
thankfully it's becoming much less of an issue with AMM
2nd BOOM
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Automatic Market Maker?
Posted Using LeoFinance Beta
yeah DEXes like Uniswap and Pancake swap largely eliminate liquidity problems because all the money is for sale at fair market value at all time. no more order books with thin liquidity.