- Liquidity, or the ease with which a token can be bought and sold without significant price impact, is crucial for its attractiveness as an investment. Higher liquidity typically means lower risk of price manipulation and easier entry and exit for traders.
- Review the token’s presence across multiple exchanges and its trading volume. A token traded on numerous reputable exchanges with consistent volumes is generally more liquid and considered a safer investment.
How does the liquidity of a token, as seen in 'Markets,' affect its investment potential?
Was this article helpful?