Why is liquidity important??
Simply because there is no liquidity, it cannot attract players. And if you see someone shilling for x10-x100 while Liquidity only has a few tens of thousands $ , don't be foolish and jump in to buy.
This is a common situation in meme and shitcoin projects on DEX. Dev will pump up lies to make people fomo and rush in to liquidate them.
These types of projects have no intrinsic content, the developers just spend a little money to make some dogs, cats... then increase the price to x50-x100 then rent shills with the excuse that the cap is small, the house holds a lot of tokens, suitable. trend...
Therefore, when you hunt for odds on DEX, you need to pay attention to the Liquidity section. If it's only a few tens of thousands of $ , you should avoid it, because that number is too low, not enough liquidity for you to sell goods, so where can you get x10-x100. And if you keep rushing in, you will be the liquidity for someone else to let go.
That is also the reason why I always remind you to choose coins that have a clear story and are built according to the trend.
Projects of this type always have huge liquidity. For example, the restaking trend, when everyone knows about it, they will jump in to buy/sell continuously. Then they tell others about the potential of staking, gradually creating a huge source of liquidity.
In short, choosing projects with large liquidity will ensure both profit and risk when you buy and hold long-term.
#crypto#dungdudinh #Liquidity