Are you considering trading a token on PancakeSwap, but would like to check its liquidity before placing an order? This is a wise decision because placing an order without checking liquidity can result in the order not being fulfilled or incurring negative price impacts.
What is Liquidity in Crypto Trading?
When it comes to crypto trading, liquidity is about how easy it is to buy or sell a cryptocurrency without having a major impact on the price. For instance, you're trying to sell a cryptocurrency and you're in a market with high liquidity, you're in luck! This means there are plenty of buyers who are willing to purchase your cryptocurrency at a fair price. So, you can sell it quickly without having to lower the price too much.
However, things get tricky when you're in a market with low liquidity. In this case, there may be only a handful of potential buyers who are interested in buying your cryptocurrency. This could force you to significantly lower the price or even wait a long time before finding a buyer who's willing to pay a fair price. This can make it tough to get your hands on some cash quickly.
Check Liquidity of Token on PancakeSwap
Step 1: To check the liquidity of a token on Pancake Swap V2, you can visit this page. And to check the liquidity of a token on Pancake Swap V3, you can go to this page. The rest of the method is the same for both.
Step 2: Now select the blockchain network for which you would like to check token liquidity.
Step 3: To find a specific token liquidity, enter its name, ticker symbol, or contract address in the search bar located in the top right corner of the screen.
Step 4: Now, click on the token.
Step 5: You can view the total current liquidity of the token in the PancakeSwap pools for various pairs.
Step 6: Click on the Liquidity option, which is highlighted in the image below, to view the liquidity changes of the token over the past years.
Step 7: Scroll down, and you will be able to see the liquidity of that token with different pairs.
Step 8: After scrolling further down, you will reach the Transactions tab. This tab allows you to track recent liquidity additions and removals, as well as swaps made with that specific token. It is important to note that anyone can add liquidity on PancakeSwap.
Frequently Asked Questions
1. Is it not possible to trade on PancakeSwap without liquidity?
While it is technically possible to place a trade on PancakeSwap without sufficient liquidity, it can result in increased slippage and potentially unfavorable prices.
2. What happens when I place an order on PancakeSwap but there isn't enough liquidity?
This can result in your order being partially filled or not filled at all. If your order is partially filled, you will receive only a portion of the tokens you requested, and the remaining amount will stay in the pool until more liquidity is added or until someone else places an order that can be matched with the remaining tokens.