#Liquidity101 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 ages to execute? Well, that’s because the liquidity was low.

What is liquidity, in simple terms?

Think of the market like a fair. If there are many people buying and selling the same thing (many stands of "arepas" and many people wanting to buy them), it’s super easy to buy your arepas at the price you want and get them instantly. There’s a lot of "flow".

But if there’s only one stand of arepas and no one else is buying or selling, if you want one, the vendor can ask for whatever they want, or if you want to sell yours, no one is going to buy them quickly. That’s low liquidity!