A low-liquidity market refers to a situation where there are few buyers and sellers trading an asset. In such markets, transactions occur infrequently, resulting in a limited ability to buy or sell assets at stable prices.In cryptocurrency, this often means that a specific coin or token has a small trading volume. As a result, even minor purchases or sales can lead to significant price swings. Investors might struggle to find counterparties for their trades, making it harder to enter or exit positions without affecting the price.Low liquidity can be risky, as it increases the chance of slippage, where the execution price differs from the expected price. This can lead to higher costs, making trading less efficient. Investors in low-liquidity markets should proceed with caution, as the inability to quickly sell assets can result in losses, especially during market downturns. Overall, low liquidity can limit market participation and reduce overall confidence in the asset.