What is liquidity in crypto For any type of investment, the most crucial thing to consider is how you can effectively buy and sell your assets. After all, the whole point of investing is to gain a profit at the end of the day. How can you gain a profit if you can’t sell your assets in the first place? This is where the concept of liquidity comes in where it measures the ability of your assets to be sold in a relative amount of time. The more liquid an asset is, the higher the chances of selling it and converting your investment into cash.