#Gate广场四月发帖挑战 How to Identify Liquidity Risks of Altcoins
The key lies in assessing their actual trading depth and chip health. Coins with liquidity depletion are highly susceptible to price manipulation and difficult to sell quickly. The main risk indicators are as follows:
Core Liquidity Indicators
Trading Volume Trap: If the 30-day average spot trading volume remains below $5 million, the liquidity risk is extremely high. Be especially cautious of the "dead water" pattern where trading volume suddenly surges and then quickly diminishes.
Depth and Slippage: A persistent bid-ask spread great