#Liquidity101 Let's use Pokémon cards to explain cryptocurrency liquidity.

What is liquidity in cryptocurrencies?

Imagine you have a very rare Pokémon card, one that only a few extravagant collectors know about and are looking for. If you decide to sell it, it might take you a long time to find someone who wants to buy it. And if you finally find someone, they might offer you a much lower price than you expected because they know there aren’t many interested buyers!

Now, think of a common Pokémon card, like a basic Pikachu. If you decide to sell it, you are sure to find many people interested in buying it immediately and at the price you expect!

Liquidity with Pokémon cards:

* High liquidity: A cryptocurrency with "high liquidity" is like that basic Pikachu card. There are many more people who want to buy and sell it all the time. This means that if you want to sell it, it’s super easy and quick to find a buyer without having to lower the price much. And if you want to buy it, it’s also easy to find a seller. Your transaction happens almost instantly and at an acceptable price.