cryptoworld Explanation on liquidity of a token

[Babubu609 0]

Hi everyone it is nice to come up with something that many will like to know about it. The word Liquidity is known but if the token is added we find the difinition difficult. Liquidity allowed you and help you to convert an asset/liquid asset you have into money in a fast and easy way. If there was an inbalance of buyers in market and sellers, this come up with kind results in a price changes. If a trader wants to sell some of his coin and there are not enough buyers, he has to drop his price to find a buyer to buy his coin.

Currently as we all know, there are many coins that have a 24-hour daily volume under millions of dollars. All this volume can't make up a market and it will also represent only a few traders. This at times often happens after an unsuccessful ICO. Note have hundreds of coins that are traded like this. Some of them are not eligible for all trading at all.

Liquidity a question??

 

 

Liquidity can also be referred as a question of market maturity, but only to some extent degree. Of some financial markets, liquidity is not something that just happens; it’s something you have to build for. To have a trust was the most significant element a person get posses. Most issuers need to address the security concerns of potential investors. In essence to some cases, the challenge of liquidity was to create the best professional investment ecosystem for you, which means to work with some regulated exchanges, with secure custody providers, and also in jurisdictions which provide legal certainty. The investors that earns can only work by regulating an institutional-grade investment products that will not fall short of traditional investment vehicles.

Moreover, those that issues can take in some area some measures to increase the liquidity of the tokens, just like buyback programs.

Finally the success of a security token offerings depend on the one that issues it the ability to gain and to the trust needed effectively to create a buyer market. It will also as well required an industrial effort as well as to the issuers also themselves to also trigger a real demand for their own assets. 

 

Here I end up my topic and hope you might understand something from the topic, regarding some the security liquidity of a token.

Edited October 22, 2020 by Babubu609

[Jaafar Fahad Hassan 114]

1 hour ago, Babubu609 said:

Hi everyone it is nice to come up with something that many will like to know about it. The word Liquidity is known but if the token is added we find the difinition difficult. Liquidity allowed you and help you to convert an asset/liquid asset you have into money in a fast and easy way. If there was an inbalance of buyers in market and sellers, this come up with kind results in a price changes. If a trader wants to sell some of his coin and there are not enough buyers, he has to drop his price to find a buyer to buy his coin.

Currently as we all know, there are many coins that have a 24-hour daily volume under millions of dollars. All this volume can't make up a market and it will also represent only a few traders. This at times often happens after an unsuccessful ICO. Note have hundreds of coins that are traded like this. Some of them are not eligible for all trading at all.

Liquidity a question??

 

 

Liquidity can also be referred as a question of market maturity, but only to some extent degree. Of some financial markets, liquidity is not something that just happens; it’s something you have to build for. To have a trust was the most significant element a person get posses. Most issuers need to address the security concerns of potential investors. In essence to some cases, the challenge of liquidity was to create the best professional investment ecosystem for you, which means to work with some regulated exchanges, with secure custody providers, and also in jurisdictions which provide legal certainty. The investors that earns can only work by regulating an institutional-grade investment products that will not fall short of traditional investment vehicles.

Moreover, those that issues can take in some area some measures to increase the liquidity of the tokens, just like buyback programs.

Finally the success of a security token offerings depend on the one that issues it the ability to gain and to the trust needed effectively to create a buyer market. It will also as well required an industrial effort as well as to the issuers also themselves to also trigger a real demand for their own assets. 

 

Here I end up my topic and hope you might understand something from the topic, regarding some the security liquidity of a token.

You have written alot about liquidity of a token ,to the level that even many that find it difficult to understand can, very simple and educative. Thank you so much for the knowledgeable post

[Babubu609 0]

19 hours ago, Jaafar Fahad Hassan said:

,to the level that even many that find it difficult to understand can, very simple and educative

I find it so usefull to write up a topic that constitutes a lot of knowledge that is mostly needed by everyone in this forum most especially the newbies.

 

@Abuyaman you are welcome to cryptotalk mate. Happy Posting is good to learn and always practice.

Edited October 23, 2020 by Babubu609

[Jaafar Fahad Hassan 114]

@Babubu609 thats good , keep it up mate, keep improving others especially the newbies with your hard work , 

@Abuyaman sure many dont know but with the wide explanation, they will understand very well

[Projectcrypto 4382]

This is a very good explanation you have made mate and i believe everyone that reads it well will earn something to add to his/her experience and knowledge because this is well explained to us and i hope the begginers take advantage of this topic too so that they won't have problem in the future whenever they come across this term liquidity of a token.

[Jaafar Fahad Hassan 114]

3 minutes ago, Projectcrypto said:

This is a very good explanation you have made mate and i believe everyone that reads it well will earn something to add to his/her experience and knowledge because this is well explained to us and i hope the begginers take advantage of this topic too so that they won't have problem in the future whenever they come across this term liquidity of a token.

Yeah, that why I always encourage from this forum to follow him @Babubu609, because reading his post will add a lot to one knowledge about cryptocurrency, his post are just too wonderful

[Projectcrypto 4382]

4 minutes ago, Jaafar Fahad Hassan said:

Yeah, that why I always encourage from this forum to follow him @Babubu609, because reading his post will add a lot to one knowledge about cryptocurrency, his post are just too wonderful

He is a well recognized member and a good ambassador of this great forum of cryptotalk platform and that is why you can see him with lots of earned reputation because he is really contributing to the development of this great forum, so we should try and imitate him for his good work because he is a role model.

[Jaafar Fahad Hassan 114]

Just now, Projectcrypto said:

He is a well recognized member and a good ambassador of this great forum of cryptotalk platform and that is why you can see him with lots of earned reputation because he is really contributing to the development of this great forum, so we should try and imitate him for his good work because he is a role model.

True. Am glad am around him in this forum, let all dedicate and try to impact in others to in this forum someday,honestly @Projectcrypto I find your post nice and educative as well

[Projectcrypto 4382]

2 minutes ago, Jaafar Fahad Hassan said:

True. Am glad am around him in this forum, let all dedicate and try to impact in others to in this forum someday,honestly @Projectcrypto I find your post nice and educative as well

I am only trying to give the best of my knowledge so that we can all benefit from each other because we also have the likes of @Whited35, @Calvinpriva, @Guru2050, @Dorjoy12, @Oxygen99, @Ndayebo8, @Honny143 and other responsible members who are making good contributions in terms of creating helpful topics and posts that are in f great benefit to the forum, it an honor to work alongside with them because they are phenomenal👌.

[malik6314193 5449]

Thanks for sharing this article in details. I know it but not too much. As i know is that liquidity of any coin help to stable the price of any coin. As high liquidity high the buy and sell wall which support the price. 

[Jaafar Fahad Hassan 114]

Thats true, I have seen members like @Honny143 @Oxygen99 @Dorjoy12 and also @Guru2050, I find there contributions very useful to be honest, I have been following there post recently and honestly am happy how they reply to my comments and post. Thanks guys for improving us.

[Whited35 15285]

4 hours ago, Projectcrypto said:

I am only trying to give the best of my knowledge so that we can all benefit from each other because we also have the likes of @Whited35, @Calvinpriva, @Guru2050, @Dorjoy12, @Oxygen99, @Ndayebo8, @Honny143 and other responsible members who are making good contributions in terms of creating helpful topics and posts that are in f great benefit to the forum, it an honor to work alongside with them because they are phenomenal👌.

@Projectcrypto Thanks friend but it is my humble request to you guys, please instead of mentioning limited contributors in this way, cite the whole community because here are so many incredibly talented contributors with genuine ideas. I have clearly seen their high quality posts so this sort of activity seems quite odd, let's respect the all, it is online community 🙏

Edited October 23, 2020 by Whited35

[Oxygen99 1930]

51 minutes ago, Whited35 said:

@Projectcrypto Thanks friend but is is my humble request to you guys, please instead of mentioning limited contributors in this way, cite the whole community because here are so many incredibly talented contributors with genuine ideas. I have clearly seen their high quality posts so this sort of activity seems quite odd, let's respect the all, it is online community 🙏

You have made mention of a good point my friend because we also have good contributors even among the junior members but since they have less number of posts and reputations we don't recognize there good which is why also support the citation of the whole community.

[Honny143 13612]

@Projectcrypto Thanks my friend for your appreciation but sorry to say iam also agree with @Whited35  opinion, because in this forum so many talented members sharing their useful knowledge and given their useful contribution,

so if we add few members name then they are hurts so pls don't add few members name, if you hurts my opinion  then🙏 pls excuse me my friend.

[Oxygen99 1930]

1 hour ago, Jaafar Fahad Hassan said:

Thats true, I have seen members like @Honny143 @Oxygen99 @Dorjoy12 and also @Guru2050, I find there contributions very useful to be honest, I have been following there post recently and honestly am happy how they reply to my comments and post. Thanks guys for improving us.

You are welcome my friend, we are performing our duty to make sure everyone learn from us just the way we are learning from others in this forum and since it is part of our duty to make sure the forum is filled up with beneficial informations definitely we have to keep improving day by day.

[Dorjoy12 8962]

@Projectcrypto as we are a member in crypto discussion forum so its our duty to work here in friendly way plus share knowledge with each other because we dont have enough idea about crypto still.. So if we help each other in this forum by different ways then i think it will be very greatful to us..     Again also here has many unbelievable members who make dangerous post.. You can  follow     up them too for better knowledge..    

[Oxygen99 1930]

12 minutes ago, Mosharraf said:

so this forum is a teacher for everyone

You have made a good point here because this forum talks alot about Cryptocurrency and anything related to it and i believe everyone that reads this topic which talked about try liquidity of token will surely learn something good to add to there experience.

[Ndayebo8 0]

@Babubu609Thank you for every detailed explanation is nice to have a good members like you in this forum. I learn a lot from your topics since when am a beginner. I would like to show much appreciation for your effort.😃

[Dorjoy12 8962]

@Babubu609  so you wanted to mean liquidity for those coin or token that trading volume is much low than the top crypto currency.. That is why liquidity pool created by which a good coin and a low coin pair will be mixed that will lead the trading volume high.. Because liquidity coin has very low value that can be dead too in crypto market.. Or what do you wanted to Mean?           

[Jaafar Fahad Hassan 114]

18 hours ago, Oxygen99 said:

You have made a good point here because this forum talks alot about Cryptocurrency and anything related to it and i believe everyone that reads this topic which talked about try liquidity of token will surely learn something good to add to there experience.

Yes, you should have easily answer @Mosharraf that it is a teacher ,it teaches mainly cryptocurrency to those that have little knowledge about it and those that have massive knowledge as well. 

[Projectcrypto 4382]

@Whited35, @Honny143 and @Dorjoy12 i understand what you are saying and I really appreciate your efforts to make me more this because for sure we have other good contributors in this forum and isolating few among all will for sure make some members feel bed that we don't appreciate there efforts working in the forum and for everyone reading this I am using this medium to apologise 🙏 for what i earlier did which might make you feel bad... apologies mates.

[Honny143 13612]

13 minutes ago, Projectcrypto said:

@Whited35, @Honny143 and @Dorjoy12 i understand what you are saying and I really appreciate your efforts to make me more this because for sure we have other good contributors in this forum and isolating few among all will for sure make some members feel bed that we don't appreciate there efforts working in the forum and for everyone reading this I am using this medium to apologise 🙏 for what i earlier did which might make you feel bad... apologies mates.

Oh on @Projectcrypto don't ask apologize my friend now iam feeling bad for myself, we are all like friends so there is no formality, i know your intentions is not like that,

because you're one of the good member on this forum, I personall request pls 🙏 remove these apologise words my friend..because these words really heart touching.

[Projectcrypto 4382]

17 hours ago, Ndayebo8 said:

@Babubu609Thank you for every detailed explanation is nice to have a good members like you in this forum. I learn a lot from your topics since when am a beginner. I would like to show much appreciation for your effort.😃

Indeed mate he is a role model which every newbie need to follow his footsteps because he has contributed very much towards creating helpful topics and making useful posts that everyone benefit especially the newbies, so let's focus all.

[Oxygen99 1930]

2 hours ago, Jaafar Fahad Hassan said:

Yes, you should have easily answer @Mosharraf that it is a teacher ,it teaches mainly cryptocurrency to those that have little knowledge about it and those that have massive knowledge as well. 

This forum is just like a teacher to all of us present in it but only who focus and concentrate will achieve good from the forum because knowledge is light and the more we learn the more we see the good things that will enable us to be successful in this field.

[Mike1515 2977]

I really do love this explanation is really important there are so many ways to which we need to work and put together everything in the right kind of the right effort we work for ,the truth is we need to work and put together a good a good effort in understand the same position we have today