Market structure

Liquidity

How easily an asset can be bought or sold without moving price heavily.

What it means

Liquidity describes market depth across exchanges, pools, and order books. High liquidity generally makes entries and exits cleaner.

Why it matters

Thin liquidity can make price charts misleading because small trades can create large moves. It also raises exit risk during stress.

Same category

Related glossary reads

Market structure

Slippage

The difference between expected price and executed price.

Glossary read
Market structure

Holder concentration

How much supply is controlled by the largest wallets.

Glossary read
Market structure

Transaction fees

Fees users pay to have transactions processed.

Glossary read
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