#CircleIPO Let's use Pokémon cards to explain the liquidity of cryptocurrencies.

What is liquidity in cryptocurrencies?

Imagine you have a very rare Pokémon card, one that only a few extravagant collectors know about and seek. 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!

Now, think about a common Pokémon card, like a basic Pikachu. If you decide to sell it, you're sure to find plenty of people interested in buying it right away 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.