Understanding cryptocurrency liquidity is an important skill for new cryptocurrency traders, and in this video I want to explain what liquidity means, how liquidity can affect your cryptocurrency trading strategy, and compare a few high liquidity coins like Ethereum and Bitcoin to lower liquidity coins to highlight the importance of liquidity in cryptocurrency trading. In general, a higher level of liquidity means that it will be easier to buy or sell the cryptocurrency and your trades will have less of an overall price impact on the cryptocurrency market. Lower liquidity coins can be more difficult to trade and may not be listed on reputable exchanges. #crypto #investing #cryptocurrency
00:00 Introduction
01:05 Liquidity Examples
03:00 Easier to Sell/Buy
04:10 Higher Liquidity and Exchanges
05:10 Price Impact Effect
07:39 Summary
References