What is liquidity in cryptocurrency?
Liquidity refers to how easily an asset can be bought or sold.
If liquidity is high:
• transactions are executed quickly
• the difference between the buying and selling price is small
$BTC and $ETH have very high liquidity.
Smaller coins may have significantly lower liquidity.
Liquidity refers to how easily an asset can be bought or sold.
If liquidity is high:
• transactions are executed quickly
• the difference between the buying and selling price is small
$BTC and $ETH have very high liquidity.
Smaller coins may have significantly lower liquidity.