Good Morning Steemit community.
I wanted to pass on a tip that is believe is crucial during price spikes like what we are witnessing with Steem.
Trading Liquidity refers to the ease with which you can buy or sell a stock at or near the current market price.
For an illiquid asset, the concept of a market price has much less meaning. If a illiquid asset last traded a few coins at $4, that does not mean that you could sell 10,000 coins for anything close to that price. If the coins are illiquid, there may be no offers to buy at anything close to $4.
While holding an liquid asset, you will typically experience great volatility in value. It may not be unusual for the trading price to fluctuate by 20% or more on a daily basis. And you may not be able to sell your holding without driving the market significantly lower.
So really community keep this is mind before you jump on the hype and place all your eggs in one basket.
Just look to the past history of previous crypto pump and dumps and you will begin to see the similarities.
There is amazing opportunity to increase your portfolio value but at great with great opportunity comes great risk.
Be cautious and plan accordingly. We are in the new frontier of media. Be happy and enjoy the ride :)