What is LIQUIDITY in Crypto? Explained in 3 minutes

Liquidity in crypto is the ease at which you can convert your crypto to another asset or cash without significantly affecting its price.

In this 3-min animation, let's identify the differences between a liquid market and an illiquid market.

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Timestamps:
00:00 Intro
00:18 What is liquidity?
00:45 Liquid market vs Illiquid market
02:08 What are liquidity pools?
02:32 Outro

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[CoinGecko]

Is this video helpful for you to identify whether a crypto asset has a liquid or an illiquid market? 🤔

[blockchaininvestments]

That's a great video CoinGecko! Gotta love small and easy vids like this

[BitsPuls]

I've always found the analogy of swimming in a pool to explain liquidity to be spot on! It's so clear and relatable. And the way you connect it to slippage and spread is genius. It's like the missing puzzle piece I needed to finally understand these complex concepts. Thanks for making crypto a little less intimidating!

[pabloaaaj]

Amazing!! Loving these educational videos!!!

[kamui]

Nice video, I've been in crypto for 2 months yet till now I didn't know what liquidity until i watch this

[Jim_Snowman]

Liquidity is also something that is meant to be "drained" sooner or later...😢

[ConsoleOnyekwere]

How much big can a coins liquidity price be and will be considered a good liquidity?

[hntgvyf]

What do you think about massa labs project?

[andrewmarkov]

Fuckin awesome. thank a lot. Keep it up

[deeqacabdi]

Plz who may understand me liquidity still confused

[oojqltg]

Ciao, vorremmo chiederti di aiutarci a creare una promozione video. Come posso contattarti

[simonh]

Market cap isn't applicable to crypto. What is important is liquidity. The two are very different. This vid is propagating a fallacy.

If Tommy and Timmy each put $10 in a piggy bank, and then along comes Jimmy and puts in $20, that doesn't mean that there is $60 in the piggy bank.

If Tommy and Timmy each take out $20 from the piggy bank, there is nothing left for Jimmy.


Now apply that analogy to crypto and you will realise the ''value'' or ''market cap'' is bs. It's like saying that there was $60 in the piggy bank, when there was $40.

[siqlmii]

Honestly, he's an amazing person. He uses his
time, moves and basically his life into helping
people who are less fortunate. using an
excellent money recovery model as well in
making profits, he really is still doing it out of his
own heart. you really are a saint *Adriannotch*
and a Wonderful Wonderful Person. Love from
England.

[brenchomsky]

A cryptocurrency is an imaginary currency.