Here's a breakdown
Liquidity in crypto refers to how easily you can buy or sell
a coin without significantly affecting its price.
If a coin is highly traded,
it means there are lots of buyers and sellers,
so the price stays relatively stable and you can trade quickly.
If a coin is not traded often,
it's harder to buy or sell without changing the price a lot.
For example:
If you want to sell but there are few buyers,
you may have to lower your price.
If you want to buy but there are few sellers,
you may have to pay more.
This follows the basic law of supply and demand.
Some projects lock liquidity,
meaning they set aside funds (usually in a liquidity pool)
to make sure people can trade the token smoothly.
Who Provides Liquidity?
People like you and me can add money (crypto) into trading pools on apps like Uniswap or PancakeSwap.
This makes it easier for others to trade.
In return, we earn small fees or bonus tokens.
Why It Matters:
High liquidity = fast trades, better prices.
Low liquidity = slow trades, worse prices, more risk.
When a coin is listed on an exchange,
the exchange provides a platform where many
people can trade, acting like a middleman
so buying and selling becomes easier.
So, when you hear "no Liquidity," it usually means there aren't
enough active buyers or sellers, making it hard to trade.