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Which cryptocurrencies are most prone to illiquidity issues?

Le KronborgFeb 15, 2021 · 5 years ago1 answers

What are some cryptocurrencies that are particularly susceptible to illiquidity issues? Which factors contribute to their illiquidity?

1 answers

  • Bo ChurchNov 27, 2024 · 9 months ago
    At 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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