There are many tokens on Hive-Engine but almost all of them have extremely low trading volume. The biggest problem is that if you buy a large amount of any token, selling it later becomes very difficult because there is not enough liquidity in the market.
That is why whenever a new project is launched or its tokenomics are designed, the first priority should be ensuring strong liquidity. Another important factor is creating genuinely interesting projects that naturally attract people and increase market participation over time.
This has been the main issue with #Hive-Engine tokens. I (with my Uncles)vpersonally develop Python trading bots and have already connected API bots with Binance where I can trade multiple coins simultaneously and exit positions efficiently.
I was thinking about building something similar for Hive-Engine as well but unfortunately the trading volume there is almost negligible. There is no such API system to connect the bot and other difficulties as well.
If such facilities existed on Hive Engine then why wouldn’t the volume increase and why wouldn’t traders come here? The issue is that these facilities are still not available here.
There are only a few old projects that have their own platforms and they have a little bit of liquidity. Apart from them finding liquidity here is quite difficult. Also such features and systems have not yet been developed that could connect it with bots or similar automated tools.
I have tried many times to trade tokens with each other but due to low liquidity or you could say the lack of trading volume it has been very difficult for me. I have experience trading various cryptocurrencies on Binance where trading activity is much higher and transactions happen quickly.
At the moment gold and silver are also among the best assets to use for hedge trading. However when it comes to Hive-Engine I have repeatedly faced the same issue low liquidity. Sometimes weeks pass without being able to execute even a single trade.
This is one of the major concerns that Hive users believe should be addressed. The platform has different types of users including traders who want to actively trade and earn within the ecosystem.
One positive aspect of #Hive-Engine is that there are no gas fees or expensive transaction charges which is a huge advantage for traders.
If liquidity, trading volume and better trading tools were improved it could attract many more traders and significantly strengthen the Hive ecosystem.
I also noticed that if there are some tokens who have good volume but still there is a huge spread in trading them. This is how a trader will not like. You can see an example that I shared in the screenshot of Swap.HBD and Swap.hive that there is still a huge spread and with a low volume here.
In such conditions trading or investing in any project becomes extremely difficult because liquidity risk remains very high.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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