Cryptocurrency Liquidity – A Big Problem for Decentralized Trading Platforms

The concept of liquidity is unique and has many angles to it. In layman’s term, an asset is liquid when it holds the potency to be converted into cash on demand. Another angle says that when you are able to buy or sell an asset at a decent price.

Liquidity of an asset implies that it doesn’t have discounts or premiums appended to it during buying and selling and it is really simple to enter and exit the asset. It is a known fact that the product which is traded more (sold and bought) doesn’t have attached premiums or discounts. The frequency of buying and selling decides the worthiness of the item.

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