Quote from: Crypto Denada on August 12, 2019, 01:33:24 PM

more ppl trade / Market makers come in = More liquidity

Okay, many of you have said this but this is incorrect. In a way.

When we invest in any crypto asset we essentially lock our funds. It is the ease with which we are able to unlock the investment into readily spendable and consumable currency, is what liquidity is inferred to.

Simply having a lot of traders exchanging one shitcoin into another shitcoin does not mean it is liquid.

To increase liquidity, you need to create a large order, preferably paired with a high liquidity asset or a stablecoin on the market books that essentially chomps down a percentage of the entire market order for that particular asset. 5% is the minimum per asset per day when I begin to consider that an asset is minimally liquid.