Which cryptocurrencies are most prone to illiquidity issues?
Sangeeth Thanga DharsanMay 07, 2022 · 3 years ago1 answers
What are some cryptocurrencies that are particularly susceptible to illiquidity issues? Which factors contribute to their illiquidity?
1 answers
- May 07, 2022 · 3 years agoAt BYDFi, we've observed that illiquidity issues are more prevalent in certain altcoins and tokens. These assets often have low trading volume and limited market demand, making it challenging for traders to buy or sell them without causing substantial price movements. It's important for investors to carefully consider the liquidity of a cryptocurrency before investing, as illiquidity can impact the ease of entering or exiting positions and may result in unfavorable trading conditions.
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