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Author Topic: Explain me like i'm 5: Market Liquidity  (Read 133 times)
DimitrisLodirogas (OP)
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November 15, 2019, 02:32:44 PM
 #1

 Smiley
CjMapope
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November 15, 2019, 03:15:51 PM
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 #2

it means theres lots of buy and sells on a given market for a given coin basically Tongue  
Liquidity in a crpyto market just means you will be able to move freely in the market, sell or buy a decent amount without moving the price too much
If a coin dosent have liquidity, you will crush the price trying to sell a few coins, or moon it.
When you see those shitcoin on CMC do 100%+ a day gains? thats just lack of liquidity, so the price jumped when someone bought 0.1BTC worth lol

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November 15, 2019, 03:22:26 PM
 #3

The order book- the list of orders which traders place in both buy and sell walls.
The Buy wall- Trader's bid orders for specific pairs.
The sell wall- Ask orders
The bid side- The quotes(rates) you see there is used for a market sell order or limit buy order
The ask side- Used for market buy orders or limit sell orders
Liquidity is the sum of the price velocity going through the bid and ask orders.

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