MountFujiVista
Mon Jul 08 2024
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7 answers
1372
Can you trade a coin with illiquidity?
Could you elaborate on the viability of trading a cryptocurrency that exhibits significant illiquidity? Many investors are understandably cautious when it comes to dealing with coins that lack sufficient trading volume and market depth. Wouldn't such a coin pose challenges in terms of executing trades efficiently, potentially leading to slippage and higher transaction costs? What strategies or considerations should investors keep in mind before engaging in trades of such illiquid coins? Furthermore, how do you assess the potential risks associated with trading such assets, especially in the volatile cryptocurrency market?
