You just bought a shiny new token. It’s trending, the price is rising, and you think you’re early. A few days later, you want to sell. But no one’s buying.
That’s liquidity.
So, what is liquidity in crypto?
Liquidity means how easily you can buy or sell a coin without affecting its price too much.
• High liquidity = lots of buyers and sellers
(Think BTC, ETH, BNB. In and out anytime.)
• Low liquidity = few buyers, fewer sellers
(Think random low-cap tokens. You may be stuck.)
Why does liquidity matter?
Because it decides whether you can exit your trade when you want.
Got a 2x on a memecoin? Great.
But if there’s no liquidity, it’s just numbers on your screen.On the flip side, selling a highly liquid coin like ETH even in a market dip? Almost instant.
Liquidity is often more important than price.
What affects a coin’s liquidity?
Exchange Listings
More listings = more users = more volume.Community & Hype
Projects with active communities usually have better trading activity.Market Cap
While not always the same, higher market cap coins tend to have better liquidity.Tokenomics & Vesting
If too many tokens are locked, it can choke trading volume.
How to check liquidity before buying?
Use tools like DEX Screener, CoinMarketCap, or DexTools
Look at 24-hour trading volume
Check buy/sell spread (big gaps = danger)
Try swapping a small amount first to test
Coin of the Day: WalletConnect Token (WCT)
$WCT is currently trading around $0.72, up 6.5% in the last 24 hours. Immediate support lies at $0.64, while resistance is seen at $0.75, its recent all-time high. A breakout above $0.75 could trigger a rally towards $0.85, while a drop below $0.64 may lead to a retest of $0.58.
Follow @mythoughts — no hype, just thoughts