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  1. Home
  2. /Glossary
  3. /Exit Liquidity
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Exit Liquidity

The people who buy when insiders or early investors are selling.

Definition

The people who buy when insiders or early investors are selling. Being someone's exit liquidity means you bought at the top while they cashed out. It's why you should research who holds large token allocations before investing.

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Related Terms

Dump

A sudden, significant price drop usually caused by large sell-offs.

Bag Holder

Someone stuck holding a cryptocurrency that's dropped significantly in value.

Whale

Someone who holds a large amount of cryptocurrency, enough to move markets with their trades.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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