Glossary · L

What is liquidity in crypto?

Last reviewed:

Liquidity describes how easily something can be bought or sold without moving its price much. A highly liquid asset has many buyers and sellers. A coin with low liquidity can be hard to sell, and even a small sale can drop its price sharply. In DeFi, a liquidity pool is a pile of tokens that people trade against.

Hands turning the pages of a book

Related terms

Join the Academy

Start here. Learn first. The sample lessons, topic pages and glossary are open to read, with no card and no signup.

Start with Lesson 1