#Liquidity101 Liquidity, in economics, represents the quality of assets to be converted into cash immediately without significant loss of value. Thus, the easier it is to convert an asset into money, the more liquid it is said to be. Liquidity in cryptocurrencies refers to the ease with which cryptocurrencies can be bought or sold without significantly affecting their price. High liquidity implies a large number of buyers and sellers, which facilitates quick transactions and reduces risk.