#Liquidity101
What is Liquidity in Crypto Trading?
Liquidity refers to how quickly and easily an asset can be bought or sold without affecting its price too much. High liquidity = smooth execution. Low liquidity = delays, price jumps, or slippage.
⚡ Why It Matters:
🟢 Tight Spreads → Better buy/sell prices ⚠️ Faster Execution → No waiting for a counterparty 🔴 Less Slippage → Your trade fills close to your expected price
🧪 Real Example:
You try to sell 1,000,000 of a low-cap token on a DEX. There’s not enough liquidity in the pool — so either your order doesn’t fill or it fills at a terrible price, costing you 10%+.
Now imagine doing the same with ETH or BTC. It’s done in seconds, with cents of slippage. That’s the power of liquidity.
