Liquidity
In short
Liquidity describes how easily a coin can be bought or sold without moving the price. It is a market's invisible quality.
Illiquid markets punish twice: wide spread on entry, slippage on exit — and in a crash there is sometimes no buyer at a fair price at all.
How do I spot poor liquidity?
Wide spread, thin order book, large price jumps on small orders.
Related terms
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