Blockchain Glossary

Liquidity

Published on August 28th, 2021

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. In other words, liquidity describes the degree to which an asset can be quickly bought or sold in the market at a price reflecting its intrinsic value. Cash is universally considered the most liquid asset because it can most quickly and easily be converted into other assets.