Summary of the Concept of Liquidity:
Liquidity in cryptocurrencies is the ease and speed of buying or selling a particular currency without causing a significant and sudden change in its price. Liquidity primarily comes from the abundance of buy and sell orders available in the Order Book and from the amount of funds deposited in Liquidity Pools on decentralized platforms. High liquidity (as in Bitcoin) means price stability and safety for the trader, while low liquidity (in new currencies) means violent fluctuations and very high risks. In short, liquidity is the 'lifeblood' that keeps the market healthy and tradable.
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