The above picture comes from the FCoin exchange, the red frame is 24 hours of trading volume, 0 of the number of several, you say these currencies on the exchange, what is the use of?
In fact, the currency can not be put on the exchange, EDS before the exchange, there are people in the group to find buyers and sellers, the same person completed the transaction, why do not have to go to the exchange?
The main purpose is: when you want to buy a coin, you can find a place to buy it at any time and sell it at any time.
That is, the liquidity of the "market".
If the "market" completely lost liquidity, trading volume of 0, "price" does not exist, to dry the market, with no exchange on the shelf what is the difference?
The bank's ATM is open for 24 hours, and a bank opens multiple ATM machines. The value of the bank is not to provide services to you, but to provide service at any time. Its value more than that of a bank counter is to provide all-weather liquidity support without being affected by commuting.
For example, the value of the vending machine in our company building is not that it can provide you with food and drink, but that it can supply goods 24 hours a day.
The individual owners, who have to close the door, have to close the door, and have to close the door when the business is bad, and the business may be closed when the business is bad.
A financial market without liquidity is of no value.
The transaction of digital money and financial market is not the currency itself, but the transaction risk.
The purpose of an exchange is to provide the market with a place where risk is transferred from one trader to another.
As a trader, when he sees the liquidity-exhausted currencies on the exchange, they are priceless, want to sell, can't sell, want to buy, can't buy, and may never trade again.
We have a large business city, the flow of people is not enough, the flow of exhaustion crisis, the business inside the business can not make money, go out of the market, directly lead to the market paralysis, can not operate normally.
After the 94 storm last year, the digital money market was badly lacking in liquidity. Many people took the renminbi and couldn't find their competitors, so the exchange introduced the "market maker".
Later, I worked as a businessman on OKEX to act as an opponent's disk and provide liquidity to the market. With the exhaustion of liquidity and the absence of an opponent's plate, there will be no more lists in a day, and the trading area will be cancelled.
Like a house, the loss of liquidity is at least a value. If the money market is short of liquidity, even the value is not, and the price is usually up, the price will fall and the price is seriously distorted.
A market without liquidity is sure to be short of an opponent's disk. If it loses its rival, it will go up and down.
When the bear market, it is the iron head leek, which leads to no liquidity in the market. When the bull market, they are all passionate and passionate. The people who see many feel that they are earning and going up. The people who are empty think they are going up too much. There are many hands, the market is more and more hot.
When the bad news comes, the whole market is unanimously empty, all are selling, the opponent's disk is no longer balanced at the moment, and it will go out of the single side trend of the plunge and thus emerge the liquidity crisis.
In the event of a liquidity crisis, someone has to come out to rescue the market, or else the market will be paralyzed, like zero trading in the opening chart.
The introduction of "market value management" is one of the main ways to solve this problem.
Without mobility and finance, we need to look at liquidity in two dimensions.
Time: can you sell the money as soon as possible;
Price: can we reduce the price or not even sell the coin?
The two points are not guaranteed by the false liquidity.
The prodigy has something to say
When money is flowing enough, what are many people doing?
Study crazy.
Because of the liquidity of the time, not only more opportunities, but also a little fleeting, looking at the empty brain, and want to seize the opportunity, only to forget to eat the knowledge, the project white paper to look around, everywhere looking for information, like a hungry wolf pounce.
Obviously, it is impossible to see the real way overnight and miss many opportunities.
And the great gods are all time to change space, in the current currency liquidity is generally insufficient, take time to strengthen learning, because even if only seize a chance, we will make a full profit.
Many full time mothers do so well, they usually take time to learn, work in the block chain industry, the income may be the highest in the family.