💡 CRYPTO COURSES
⁉️ WHAT IS LIQUIDITY?
The liquidity of the cryptocurrency market refers to the speed and ease with which you can buy or sell a cryptocurrency without causing a significant change in its price.
🫡 When a cryptocurrency has enough liquidity, you can exchange your tokens quickly and at fair prices.
🫡 When a crypto has high liquidity, prices are more accurate. This means less risk of slippage.
Slippage refers to the difference between the expected price of a transaction and the price at which it executes.
🫡 Low liquidity can be risky.
Example: You hold a memecoin worth 10 million dollars but the total liquidity of this token is only 3 million dollars.
If you try to sell all your tokens, you will not get the full 10 million USDT, because your sell order will drop the price.
☀️ THAT'S WHY IT'S IMPORTANT TO CHECK THE LIQUIDITY OF A CRYPTO BEFORE BUYING IT
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