What is liquidity?
How easily an asset can be bought or sold in size without moving its price.
A liquid market has plenty of resting orders close to the current price, so a large trade barely shifts it. An illiquid one has thin depth, and a modest order can move the price several percent.
Why it matters: liquidity determines whether the price you see is a price you can actually get. Small assets often look attractive on the way up precisely because thin liquidity amplifies moves — and the same thinness means there may be no bid at all when you want out. Compare slippage.
Related terms
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Crypto assets are volatile and high-risk. Prices shown are indicative and may be delayed. Always do your own research. Coinpric does not provide financial advice.