Importance of crypto Liquidity

[Bobcrypto]

Guys, i have come to the conclusion that increased liquidity would mean price stability, easier, cheaper transactions, and more investor confidence. It would also prevent Bitcoin whales, or large buys, from manipulating cryptocurrency prices. What are your thoughts?

[HomelandPatriot]

why all this depends of liquidity?
if you wanna invite investors it would be to have sec approval

[masterrex]

Guys, i have come to the conclusion that increased liquidity would mean price stability, easier, cheaper transactions, and more investor confidence. It would also prevent Bitcoin whales, or large buys, from manipulating cryptocurrency prices. What are your thoughts?

Liquidity was one of the lifeline of any tokenized blockchain base starups, since it can dictate the future demand of the project token base on the existing price and utilization that may attract more users as well.

[gotbounty]

Guys, i have come to the conclusion that increased liquidity would mean price stability, easier, cheaper transactions, and more investor confidence.

What do you mean by price stability? Don't we know that crypto characteristic is volatile and unstable? Then, these make investors gain big profits. I don't think it is needed to make the prices more stable. Anyway, I think crypto has already had small transaction fees and everyone can join in crypto. Why it is needed to be easier?

[Bobcrypto]

Guys, i have come to the conclusion that increased liquidity would mean price stability, easier, cheaper transactions, and more investor confidence.

What do you mean by price stability? Don't we know that crypto characteristic is volatile and unstable? Then, these make investors gain big profits. I don't think it is needed to make the prices more stable. Anyway, I think crypto has already had small transaction fees and everyone can join in crypto. Why it is needed to be easier?

Friend, coin liquidity atually enhances price stability. Liquidity is a vital concept that every trader or investor needs to fully grasp before making any investment decision. Understanding liquidity will help you to navigate the pain points when you’re considering to buy or sell a particular cryptocurrency, ensuring that you do not incur higher trading costs or inefficiencies that can throw you off guard.
Now, Liquidity refers to the degree to which a particular asset can be quickly bought or sold without affecting the general stability of its price.
I think liquidity play great roles in cryptocurrency, especially buying and selling and decision making for investment. Thanks

[muneerashine]

Yes it is very important because the greater the volume of a specific coin, the greater the activity and the liquidity.