#Liquidity101 Liquidity is one of the most important factors to consider when we want to trade on certain platforms. If a market does not have enough liquidity, it is quite difficult to execute transactions without causing a significant impact on the price.

Liquidity refers to the ease with which an asset can be exchanged for another asset or cash without affecting the price. In simple terms, liquidity describes how quickly and easily an asset can be sold or bought.

In this sense, within a market with high liquidity, an asset can be sold or bought quickly and easily, without having too much effect on the price.