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In the crypto world, liquidity is a benchmark for traders and investors to assess the health of a crypto market. High liquidity indicates many active buyers and sellers, and vice versa. Transactions are processed quickly and do not impact price fluctuations, indicating a stable crypto price. However, low liquidity can lead to slow transactions and high risk, and prices can fluctuate rapidly and drastically when large transactions occur.
As investors or traders, crypto liquidity is the foundation of a crypto's market, enabling us to make more informed decisions. But how do you measure crypto liquidity?
As investors or traders, crypto liquidity is the foundation of a crypto's market, enabling us to make more informed decisions. But how do you measure crypto liquidity?