{"id":404195,"date":"2019-11-13T18:00:11","date_gmt":"2019-11-13T18:00:11","guid":{"rendered":"https:\/\/wncen.com\/?p=404195"},"modified":"2024-06-11T10:37:45","modified_gmt":"2024-06-11T10:37:45","slug":"vast-majority-of-crypto-assets-lack-enough-liquidity-to-make-good-investments","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/vast-majority-of-crypto-assets-lack-enough-liquidity-to-make-good-investments\/","title":{"rendered":"Vast Majority of Crypto Assets Lack Enough Liquidity To Make Good Investments"},"content":{"rendered":"

The crypto market first began with the advent of Bitcoin<\/a>, but in just a decade\u2019s time, thousands upon thousands of alternative crypto assets have been created.<\/span><\/p>\n

Many of these new-age altcoins have performed well for early investors, but the vast majority of crypto assets outside of the top 40 by market cap have little to no liquidity, making them a very poor investment.<\/span><\/p>\n

99% of Crypto Assets Are Poor Investments<\/h2>\n

Bitcoin<\/a> was the first-ever cryptocurrency, created by the mysterious Satoshi Nakamoto, as a way to free the world from the shackles and pitfalls of modern-day finance, where big banks and governments maintain control over the masses and use the control to push their agendas.<\/span><\/p>\n

Related Reading | List of Crypto All-Time High Prices Shows How Far Market Must Recover\u00a0<\/a><\/strong><\/em><\/p>\n

With Bitcoin being such a breakthrough in financial technology, many other altcoin assets have since been developed, some attempting to carve out their own niche in the market, while others seek to improve in key areas where Bitcoin struggles \u2013 for example, transaction speeds.<\/span><\/p>\n

The boom in new altcoins really picked up in 2017, during the crypto hype bubble and ICO boom. During that time, thousands of more altcoins were launched on the Ethereum protocol as ERC-20 tokens, with many later moving to their own main net, while others remain on Ethereum even today.<\/span><\/p>\n

Of the potentially thousands of altcoins on the market, only 4,978 of them are known enough to be listed on cryptocurrency price and exchange data aggregator CoinMarketCap<\/a>. However, only the top 40 crypto assets listed by volume offer investors enough liquidity to be considered \u201cgood investments,\u201d according to crypto analyst Willy Woo.<\/span><\/p>\n

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Coinmarketcap lists 4978 coins. Here's the top 50 by volume. Below the top 40 doesn't even register i.e. 4938 coins are illiquid.<\/p>\n

Investors want liquidity at entry and liquidity on exit. Very few coins have credible liquidity to be good investments. pic.twitter.com\/3kXgn3NWjV<\/a><\/p>\n

— Willy Woo (@woonomic) November 13, 2019<\/a><\/p><\/blockquote>\n