What does liquidity mean in cryptocurrency
When investing in an asset, it’s important to consider how easily you can sell it at any time – also known as its “liquidity.” Liquidity refers to the demand for an asset and how quickly you can convert it to cash. Before choosing an investment, you’ll want to understand its liquidity.
Assets with high liquidity can be sold rapidly without significantly impacting their price. Assets with low liquidity may be much harder to sell quickly.