#Liquidity101 Liquidity of a cryptocurrency asset is determined by two main factors:

* Trading Volume: The amount of the asset that is traded over a certain period (e.g., 24 hours). A high trading volume indicates an active market and many participants, which contributes to liquidity.

* Market Depth: This refers to the presence of a sufficient number of buyers (bids) and sellers (asks) in the exchange order book at various price levels. The more buy and sell orders that are close to the current market price, the deeper the market and the higher the liquidity.