#Liquidity101

Liquidity on the exchange refers to the speed and ease with which an asset can be bought or sold at a fair price without significantly impacting its value. The higher the liquidity, the faster a transaction can be executed and the desired price obtained.

More details:

What is liquidity?

Liquidity is the ability of an asset to be quickly converted into cash or another asset. This means that an asset can be easily bought or sold without significantly affecting its price.

Why is liquidity important?

High liquidity on the exchange allows assets to be traded without the risk of a significant price change when buying or selling a large quantity.

How is liquidity measured?

Liquidity in cryptocurrency markets is measured by trading volume. The higher the trading volume, the greater the liquidity.