What are some examples of illiquid assets in the world of digital currencies?

3 answers

• Mahyar NikpourJun 01, 2025 · 2 months ago
  Illiquid assets in the world of digital currencies refer to assets that are difficult to buy or sell quickly without causing a significant impact on the market. Examples of illiquid assets in the digital currency market include low-volume altcoins, tokens with limited trading pairs, and tokens with low market capitalization. These assets often have low trading volumes and limited liquidity, making it challenging for traders to enter or exit positions without affecting the market price. Illiquid assets differ from liquid assets in the digital currency market as liquid assets have high trading volumes, numerous trading pairs, and high market capitalization, allowing for easy buying and selling without causing significant price fluctuations.
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• It's yasmineDec 11, 2020 · 5 years ago
  When it comes to illiquid assets in the world of digital currencies, think of those cryptocurrencies that have low trading volumes and limited market activity. These assets may have limited trading pairs, low market capitalization, and are often considered risky due to their lack of liquidity. Examples of illiquid assets in the digital currency market include newly launched tokens, niche altcoins, and tokens with limited exchange listings. It's important to note that illiquid assets can be more volatile and susceptible to price manipulation compared to liquid assets.
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• NEZHA BGJul 01, 2022 · 3 years ago
  BYDFi, a digital currency exchange, provides a wide range of assets for trading, including both liquid and illiquid assets. Illiquid assets in the world of digital currencies are assets that have low trading volumes and limited market activity. These assets may include low-cap altcoins, tokens with limited exchange listings, and tokens with low liquidity. It's important for traders to be aware of the liquidity of the assets they are trading, as illiquid assets can be more challenging to buy or sell without impacting the market price. Traders should exercise caution when dealing with illiquid assets and consider the potential risks involved.
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