#Liquidity101
Liquidity in crypto: a key factor not to be overlooked
In crypto, liquidity refers to the ease with which a token can be exchanged without significantly affecting its price.
🔹 High liquidity: BTC, ETH — Many buyers/sellers, tight spreads
🔹 Low liquidity: Less known altcoins — High slippage, difficult to trade in large amounts
Risks of low liquidity:
• Partial or impossible execution
• Severe slippage
• Easier price manipulation
💡 Tip: always check the volumes, the depth of the order book, and liquidity on DEX/aggregators before buying.
Because in crypto, it's not just what you buy, but how you can exit that matters.
