The research found that out of the 6,656 crypto assets tracked, only 153 are available for high-volume trading on multiple exchanges. BitStacker estimates that there are 5,886 digital currencies with low volumes that are traded on a small number of exchanges.
The study serves as a reminder that speculation on volatile crypto assets is risky, as the trading volume is unbalanced. According to BitStacker analyst, Kris Lucas, “There is nothing stopping an unregulated cryptocurrency exchange from creating statistics that overvalue a particular coin.”
The report also highlighted that liquidity can help traders to understand when it may be difficult to buy or sell significant amounts of any cryptocurrency. To measure the liquidity of a digital asset, the researchers used the trading volume of the asset, often referred to as the “market capitalization.”
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