Cryptocurrency Q&A
What does not enough liquidity mean Coinbase?
What does not enough liquidity mean Coinbase?
KatanaSword
Tue Dec 03 2024
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6 answers
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I'm trying to understand the concept of 'not enough liquidity' on Coinbase. What does it imply when a platform or asset has insufficient liquidity, and how does it affect trading or investing on Coinbase?
6 answers
KDramaLegendaryStarlightFestival
Thu Dec 05 2024
Liquidity plays a crucial role in determining the occurrence of slippage in the market.
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SamuraiSoul
Thu Dec 05 2024
It represents the ease of converting a coin into cash or another asset without causing significant fluctuations in its price.
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CryptoLodestar
Thu Dec 05 2024
In a market with low liquidity, the process of matching sell orders with trade orders becomes challenging.
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CharmedSun
Thu Dec 05 2024
This mismatch can lead to delays in the execution of trades.
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CryptoVeteran
Wed Dec 04 2024
As a result, the price of the coin may move in the opposite direction of the trade, causing slippage.
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