Liquidity Is More Important Than Many Beginners Think
Imagine a shop where 100 people want to buy something, but there is almost nothing available.
The price can move quickly.
Crypto markets can behave in a similar way when liquidity is low.
High liquidity usually means there are more orders available around the current price, while low liquidity can make price movements sharper.
That's why two coins with similar market caps can sometimes behave very differently.
Have you ever wondered why some coins move much faster than others?
Imagine a shop where 100 people want to buy something, but there is almost nothing available.
The price can move quickly.
Crypto markets can behave in a similar way when liquidity is low.
High liquidity usually means there are more orders available around the current price, while low liquidity can make price movements sharper.
That's why two coins with similar market caps can sometimes behave very differently.
Have you ever wondered why some coins move much faster than others?