Liquidity

Liquidity in crypto exchanges represents the ease with which assets can be bought and sold without any substantial variation in the price. It is a prominent aspect of the crypto market because it has a critical impact on the speed and ease of transactions. Liquidity in Crypto contributes to market stability, as high liquidity implies a dynamic market where crypto assets can be bought, sold, or exchanged rapidly.

It is affected by multiple factors, including trading volume, number of participants, market sentiments, market structure, exchange listing, and regulatory environment.