#Liquidity101 A look, people, if you're into the cryptocurrency thing, there's one word you absolutely need to understand: liquidity. It's not a fancy word to show off; it's the key to making your trades go the way you want!
Imagine you want to buy or sell a cryptocurrency. Has it ever happened to you that you ask for a price and end up buying/selling at a much worse one? Or that your order takes forever to execute? Well, that's because the liquidity was low.
What is liquidity, in plain English?
Think of the market like a fair. If there are a lot of people buying and selling the same thing (lots of "arepas" stalls and many people wanting to buy them), it’s super easy for you to buy your arepas at the price you want and get them instantly. There’s a lot of "flow".