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Topic: Explain me like i'm 5: Market Liquidity (Read 125 times)

legendary
Activity: 2772
Merit: 1028
Duelbits.com
November 15, 2019, 10:22:26 AM
#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.
legendary
Activity: 1820
Merit: 1092
~Full-Time Minter since 2016~
November 15, 2019, 10:15:51 AM
#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
jr. member
Activity: 147
Merit: 1
November 15, 2019, 09:32:44 AM
#1
 Smiley
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