#Liquidity101

Liquidity is a key metric in crypto trading, yet often misunderstood. Simply put, liquidity means how easily you can buy or sell a coin without impacting its price. Binance recently upgraded its matching engine to boost liquidity, reducing slippage for high-volume traders. On the other hand, newer tokens often struggle with low liquidity, leading to price volatility and risk. The recent listing of several altcoins with poor liquidity caused huge price swings and trader frustration. Always check a coin's 24-hour volume and bid-ask spread before trading. Good liquidity equals smoother trading and better pricing—essential for serious crypto investors.