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but you can look at trade volume, which is also a measure of liquidity. and trade volumes for some of these alt coins are high.

• runeks 9y ago
  No, trading volume is not a measure of liquidity. It doesn’t matter how many times per second some coin — deposited at an exchange — changes owner (according to that exchange’s database) if selling $1m worth of the coin crashes the price to zero. A trader can easily inflate volume by creating two accounts and trading back and forth with himself, thus making his two deposits count many times over in the trading volume of that exchange. But in the order book his deposits can only count once.
  • 6nf 9y ago
    That trick costs a bunch of money in fees though. Volume is still a better measure than market cap. And If you don't like using the volume or market cap, what do you use?
    • runeks 9y ago
      > That trick costs a bunch of money in fees though. Only if the exchange in question charges trading fees. > And If you don't like using the volume or market cap, what do you use? Market depth. Looking at the order book to see how much money is bidding on/being sold for bitcoins right now. See my reply to other comments for an elaboration.
      • vasilipupkin 9y ago
        market depth understates liquidity dramatically because a lot of liquidity is hidden / dark. Nobody is going to show a big order in a super volatile asset.