đ§ Whatâs liquidity?
đ„žâLiquidityâ is the ability to convert an asset into money without losing its value.
In simpler terms, if you can buy or sell a cryptocurrency at any moment and in any amount without influencing its market value, it has a healthy level of liquidity.
Letâs say you have $50,000 worth of Bitcoin. If you want to sell it, youâll be able to do so without any hiccups since Bitcoin is an active asset flush with liquidity.
However, if you hold a large amount of a less popular coin and want to sell it all, you may crash its price. Moreover, you might even be unable to sell it if few buyers are willing to buy large quantities.
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