What does liquidity mean?
Liquidity is the ease of buying or selling a currency without significantly affecting its price.
The higher the liquidity, the easier it is to enter and exit a trade quickly and at a price close to the market.
On the other hand, low liquidity means you might buy at a high price or sell at a lower price than the market because demand and supply are low.
Always monitor the daily trading volume of the currency, as it is a clear indicator of its liquidity.
