#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"