Why Crypto Liquidity Is More Than Trading Volume

A market can show impressive trading volume, but volume alone doesn't tell the complete liquidity story.
Liquidity is about how easily an asset can be traded without causing a large price impact.
Things worth observing include:
💧 Order-book depth
📊 Trading activity
↔️ Bid-ask spread
⚡ Market volatility
🌐 Number of active markets
This is why two assets with similar daily volume can still behave very differently during large trades.
Volume tells you how much was traded.
Liquidity helps you understand how easily the market can absorb trading.

💬 Which do you check more: Volume 📊 or Liquidity 💧?

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