💧 What is liquidity in cryptocurrencies?
Liquidity is the ability of an asset to be quickly bought or sold without significant price change. 📈 The higher the liquidity, the easier it is to conduct transactions without losing value. For example, coins like BTC or ETH have high liquidity because they are actively traded on most exchanges.
📊 For traders, this means less slippage and more stable spreads. For projects, it means trust from investors and a healthy market.
💡 It's important to remember: liquidity can change depending on the time of day, the exchange, and market conditions.
Have you also noticed how difficult it is to trade low-liquidity tokens? 😅
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