Cryptocurrency Q&A
What does it mean when a token has low liquidity?
What does it mean when a token has low liquidity?
Chloe_thompson_artist
Fri Nov 29 2024
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7 answers
2050
I'm wondering about the implications of a token having low liquidity. What does this indicate in terms of its market performance and usability?
7 answers
CryptoVanguard
Sun Dec 01 2024
The reason behind this is the scarcity of market participants.
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Tommaso
Sun Dec 01 2024
A token with low liquidity often experiences unexpected price movements.
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ChristopherWilson
Sun Dec 01 2024
These fluctuations are typically triggered by large buy or sell orders.
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Elena
Sat Nov 30 2024
Their collective activity ensures that the price remains relatively constant.
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KimchiQueenCharmingKissWarmth
Sat Nov 30 2024
With fewer buyers and sellers, any substantial order can drastically shift the price.
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