#Liquidity101 What is liquidity in crypto?

In crypto trading, liquidity refers to how easily an asset can be bought or sold without significantly affecting its price.

🔹 High liquidity:

– Many buy/sell orders

– Fast transactions

– Smaller spread

✅ Example: BTC/USDT on Binance

🔸 Low liquidity:

– Few traders

– Difficult to buy/sell a large amount

– Risk of "slippage"

💡 Why is it important?

– Liquid markets are safer and more efficient

– It's important to consider before entering a trade, especially with altcoins.