#Liquidity101

Liquidity is the heartbeat of any financial market—and in crypto, it’s no different. At its core, liquidity refers to how quickly and easily an asset can be bought or sold without significantly affecting its price. A highly liquid market ensures tighter spreads, faster trades, and a smoother trading experience for everyone.

For example, BTC/USDT is one of the most liquid trading pairs. You can enter and exit trades swiftly, even in high volumes, because of the number of buyers and sellers active at any given time.

Better liquidity also reduces slippage, making it ideal for traders executing large orders. It's a vital factor to consider whether you're a scalper, swing trader, or HODLer.

Understanding liquidity helps you navigate volatile markets wisely. The next time you're analyzing a token, don’t just look at the price—check the liquidity too.