#Liquidity101 Liquidity101 is your crash course on how easily assets can be bought or sold without impacting their price. In crypto, liquidity is king — high liquidity means tighter spreads, faster execution, and less slippage. It’s why trading BTC or ETH feels seamless, while smaller altcoins can be a rollercoaster. Liquidity comes from volume and market depth, often concentrated on major exchanges or stablecoin pairs. Illiquid markets can trap traders in volatile swings or cause orders to fill at unfavorable prices. Whether you're scalping or investing long-term, understanding liquidity is crucial for managing risk and making confident, cost-effective trades.