Liquidity

1. | concept

How easily a crypto asset can be bought and sold without effecting the market price.

1.1 > Ex. | high liquidity

Assets with high liquidity can be bought and sold en masse while not effecting the market price. These assets have a lot of depth on their order books, which allow for purchases of thousands, or even millions of dollars worth of an asset without shifting the price.

1.2 > Ex. | low liquidity

Assets with low liquidity are very hard to buy or sell in large amounts. They usually have sparse order books, so trying to sell or buy any non-trivial amounts will cause significant changes to market price and market cap.

* All terms and definitions may change as the Cryptionary improves