#Liquidity101

Liquidity on Binance refers to how easily and quickly assets can be bought or sold without affecting their price. High liquidity means many buyers and sellers are actively trading, ensuring smooth transactions with minimal price changes. On Binance, popular trading pairs like BTC/USDT usually have high liquidity due to large trading volumes. This benefits traders by reducing slippage and enabling faster order execution. Liquidity is crucial for a healthy trading environment, especially for scalpers and day traders. Binance also offers liquidity pools in its DeFi section, allowing users to earn rewards by providing liquidity to certain token pairs.