#Liquidity101

Liquidity in crypto refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, leading to tighter spreads, faster trades, and more stable prices—common on major exchanges and top coins like BTC or ETH. Low liquidity means fewer participants, larger price swings, and higher slippage—often seen in low-cap or newly launched tokens. Liquidity is crucial for traders to enter and exit positions efficiently. It’s influenced by trading volume, exchange type, and market depth. Always check liquidity before trading to avoid unexpected losses or delays.