Liquidity
What is Liquidity?
In the context of cryptocurrencies, liquidity refers to how quickly a digital currency or token may be exchanged for cash or another digital asset without affecting its price. A deep market with plenty of liquidity is a sign of a healthy market since liquidity is a measure of the external demand and supply of an asset.
Additionally, all else being equal, a cryptocurrency or digital asset should be more stable and less volatile the more liquidity it is accessible.
Related:
