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1. What does liquidity in the cryptocurrency market refer to?
A) The total market capitalization of cryptocurrencies.
B) The ease with which an asset can be bought or sold without significant price changes.
C) The total volume of transactions within a single cryptocurrency exchange.
D) The amount of time it takes to complete a cryptocurrency transaction.
2. How can liquidity be evaluated on a cryptocurrency exchange?
A) By analyzing the price of the cryptocurrency alone.
B) By looking at the 24-hour trading volume and the spread between the highest bid and lowest ask.
C) By counting the number of cryptocurrencies listed on the exchange.
D) By observing the trading fees applied during transactions.
3. What does a support level represent in cryptocurrency trading?
A) A price point where an upward trend stalls due to increased selling pressure.
B) A price point where buyers step in to prevent the price from falling further.
C) A price point where a cryptocurrency starts gaining momentum for a rally.
D) A price point where the cryptocurrency has reached its all-time high.