#Liquidity101
High Liquidity
Fast trades
Small price impact
Tight bid-ask spread
Example: BTC, ETH on major exchanges
š“ Low Liquidity
Harder to trade
Big price swings
Wider bid-ask spread
Example: New altcoins, small-cap tokens
High Liquidity
Fast trades
Small price impact
Tight bid-ask spread
Example: BTC, ETH on major exchanges
š“ Low Liquidity
Harder to trade
Big price swings
Wider bid-ask spread
Example: New altcoins, small-cap tokens