#Liquidity101 #Liquidity101 Cryptocurrency liquidity is a measure of how easily a cryptocurrency asset can be bought or sold in the market without causing significant price changes. The higher the liquidity, the faster and more efficiently transactions can be conducted with a small bid-ask spread.

Liquidity is influenced by:

Daily trading volume

Number of active buyers and sellers

Popularity of the cryptocurrency asset

Availability on many exchanges

Cryptocurrencies with high liquidity (such as Bitcoin or Ethereum) are more stable and safer to trade, while assets with low liquidity tend to be more volatile and high risk.$ETH