Harry
Active member
Liquidity in smaller altcoins refers to how easily an asset can be bought or sold without affecting its price. Smaller altcoins typically have lower liquidity compared to major cryptocurrencies, which can lead to higher volatility. It's essential to monitor trading volumes and order book depth to assess liquidity. Low liquidity can result in slippage, where the price changes between the order placed and execution. Understanding liquidity helps investors make informed decisions and avoid unnecessary risks.
What are your thoughts on liquidity when trading smaller altcoins?
What are your thoughts on liquidity when trading smaller altcoins?