You must have heard the word liquidity several times. Have you ever wondered what it actually mean?
As a beginner in the crypto space, this terminology is extremely important to you.
What is liquidity?
This simply means the ease by which an asset can be converted into cash without difficulty.
In cryptocurrency however, this means the ability of a coin to be easily converted into cash or other coins.
This is very important in cryptocurrency, as not all coins/tokens has liquidity. Some would have to be added at a later point.
You will also need to check if the it is high or low. I will talk about this in a later article.