What is the difference between liquid and illiquid cryptocurrencies?

3 answers

• Dec 25, 2021 · 3 years ago
  Liquid cryptocurrencies are those that have high trading volumes and are easily bought or sold on exchanges. They have a large number of buyers and sellers, which means that the price is more stable and there is less risk of price manipulation. Illiquid cryptocurrencies, on the other hand, have low trading volumes and are not easily bought or sold. They may have a small number of buyers and sellers, which makes the price more volatile and susceptible to manipulation. It's important to note that liquidity can vary between different exchanges and can change over time.
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• Dec 25, 2021 · 3 years ago
  Liquid cryptocurrencies are like the popular kids in high school - everyone wants to be friends with them. They have a lot of trading activity and are easily traded on exchanges. Illiquid cryptocurrencies, on the other hand, are like the loners sitting in the corner of the cafeteria. They have low trading volumes and are not as easily bought or sold. This lack of popularity can make their prices more volatile and subject to manipulation.
  441147
• Dec 25, 2021 · 3 years ago
  Liquid cryptocurrencies, such as Bitcoin and Ethereum, are highly traded and have a large number of buyers and sellers. This means that they can be easily bought or sold on exchanges, and their prices are generally more stable. Illiquid cryptocurrencies, on the other hand, have low trading volumes and may have a limited number of buyers and sellers. This can make it more difficult to buy or sell these cryptocurrencies, and their prices may be more prone to large fluctuations.
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