#Liquidity101 Liquidity in cryptocurrencies refers to the ease with which a digital asset can be bought or sold without significantly affecting its price. A market with high liquidity allows for quick transactions at stable prices, reducing volatility and risk. Factors influencing liquidity include trading volume, the number of participants, and availability on multiple exchange platforms. Cryptocurrencies like Bitcoin and Ethereum typically have high liquidity, while lesser-known tokens may face difficulties in being bought or sold. Good liquidity is essential to attract investors and ensure the efficient functioning of the crypto market.