Cryptocurrency Q&A
What does this pair has very little liquidity mean?
What does this pair has very little liquidity mean?
isabella_taylor_activist
Wed Dec 04 2024
|
5 answers
772
I encountered a term 'this pair has very little liquidity' in the financial context, and I'm not sure what it implies. Could someone explain the meaning of this phrase?
5 answers
ShintoSanctuary
Fri Dec 06 2024
When liquidity is low, the value of one or both assets in a trading pair becomes less reliable.
Was this helpful?
157
32
Riccardo
Fri Dec 06 2024
This is particularly evident in the crypto market, where assets can be created and deployed relatively easily.
Was this helpful?
329
87
Andrea
Fri Dec 06 2024
Cryptoassets can be listed on decentralized exchanges (DEXs) with minimal effort, leading to potential inaccuracies in pricing.
Was this helpful?
53
29
DigitalDukedom
Fri Dec 06 2024
Even centralized exchanges, which are subject to more regulation and scrutiny, can struggle with pricing when liquidity is low.
Was this helpful?
177
66
KatanaSword
Fri Dec 06 2024
Liquidity in a trading pair plays a crucial role in determining the accuracy of asset values.
Was this helpful?
56
52
