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What is Liquidity? The "Breath" of the Crypto Market!
Have you ever tried to sell a product that nobody wanted to buy? It's frustrating, right?
In the crypto world, "liquidity" is what prevents this from happening. Liquidity is the ease with which you can buy or sell a cryptocurrency without drastically affecting its price. A market with high liquidity (like Bitcoin's) has many buyers and sellers at all times. You can trade large volumes without difficulty.
A new coin, with low liquidity, has few people trading. If you try to sell a large amount, you may have to significantly lower the price to find a buyer, or simply not find one.
In the crypto world, "liquidity" is what prevents this from happening. Liquidity is the ease with which you can buy or sell a cryptocurrency without drastically affecting its price. A market with high liquidity (like Bitcoin's) has many buyers and sellers at all times. You can trade large volumes without difficulty.
A new coin, with low liquidity, has few people trading. If you try to sell a large amount, you may have to significantly lower the price to find a buyer, or simply not find one.
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