Markets & Sentiment
Liquidity explained
Liquidity
Quick definition: Liquidity is how easily an asset can be bought or sold without moving the price much.
High-liquidity coins (BTC, ETH) have deep order books, so trades of a few hundred thousand dollars still fill close to the current price.
Low-liquidity coins are prone to slippage: a large order can move the price by several percent, and they are easier to manipulate.
24-hour trading volume and order book depth are the two metrics most often used to assess liquidity.
💡 Example
📊 View trading volume by coin →Selling $50,000 of a small altcoin can drop the price 3%, while selling $50,000 of BTC has almost no impact.
Related terms
Market capMarket cap = coin price × circulating supply. It measures the size of a coin.…AltcoinAltcoins are all coins other than Bitcoin, for example ETH, SOL, XRP, DOGE.…Maker and Taker feesA Maker is a resting (limit) order that adds liquidity to the order book; a Taker is an order that fills immed…Spot tradingSpot means buying and selling actual coins at the current price: you pay and receive the coins in your wallet …
Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.