CRYPTO GLOSSARY · MARKET

What is Liquidity?

How easily an asset can be bought or sold.

📖 Full Definition

Liquidity refers to how easily a cryptocurrency can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, resulting in tighter spreads and faster trades.

💡 Example

Bitcoin has high liquidity, while small altcoins may have low liquidity, leading to price slippage.

🔗 Related Terms

Volume

Total trading activity over a time period.

Market Cap

Total value of all coins in circulation.

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