Crypto Basic :: Liquidity ..

Suppose you have 1 million dollars in your bank account. You can withdraw all or part of that money from ATM or by check if you want. You can also see the amount of money online. You don't have to look at paper money to get this feeling of having money. Because you know that your bank is able to pay your full amount at any time. Because, there is enough liquidity of money in your bank.

It is very important to check the liquidity of any new coin. If the coin do not have enough liquidity, you have to be very careful in buying those coins. If the amount of liquidity is high, it will not happen. Instead, it should be 'locked' for a long time. If not, the scam coin will remove all the liquidity.

Crypts listed on good exchanges cannot be listed without sufficient liquidity. So they are relatively safe. It should be noted that no crypto can be called good only if the liquidity issues are acceptable. There are many more parameters to check!