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22140607 No.22140607 [Reply] [Original]

I dont even know what the fuck liquidity means, and ive made 2000 bucks or crypto on the last 3 weeks

>> No.22141084

>>22140607
You'll lose it all before this is all over

>> No.22141167

>>22140607
>whats liquidity?!?!
you're going to find up the exact meaning the moment you try to cashout

>> No.22141207
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22141207

>>22140607
you're not the only one

>> No.22141379

Basically let's say you make 5 million off some lucky as fuck moon. You are like "Fuck yeah" and want to cash out and take the money only to find out that the exchanges/banks/company whoever is involved with paying out the money doesn't actually have the money to give you.

Well you'll only ever be able to cash out what they can afford to give you. They still owe you the 5 million but it'll take time for you to actually get all that money.

If they end up going bankrupt/sinking you'll not get any of that money, only what they can afford to give you and everyone else trying to cash out after they sell their assets and split it between investors.

Liquidity is one of many important factors to determining the worth of an investment.

>> No.22141398

>>22140607
I lost £2k today lol

>> No.22141455

>>22141379
It's also one of many reasons you hear the term "diversify your portfolio"

>> No.22141581

>>22140607
Sign up for an economics course