Explain the Concept of ‘Liquidity’ in Both Crypto and Traditional Markets

Liquidity, in both crypto and traditional markets, refers to the ease with which an asset can be bought or sold without causing a significant change in its price. High liquidity means there are many buyers and sellers, leading to faster trades and more stable prices.

In contrast, low liquidity can result in volatile price swings and difficulty in executing trades. While the core concept is the same, the structure of crypto markets leads to more fragmented liquidity across various exchanges and platforms.