# What is Liquidity for Cryptocurrencies? Liquidity is the feature of how an asset can be swapped for another item with economic value by an individual or corporation. Usually, liquidity can be estimated by how fast some asset can be swapped to money. One asset has high liquidity when it can be converted quiclky to cash or vice-versa.\ A market’s liquidity has a big impact on how volatile the market’s prices are. Low liquidity usually results in a more volatile market and cause prices to change agressivily. Higher liquidity usually creates a less volatile market which prices don’t fluctuate much. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://typofx.gitbook.io/usdplt-token-for-actm/token-base-information/what-is-liquidity-for-cryptocurrencies.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.