#Liquidity101

**Liquidity Explained: Why It Matters in Crypto Trading**

Liquidity measures how easily you can buy or sell an asset without impacting its price. High liquidity ensures tighter spreads and minimal slippage, leading to better trade execution. To assess liquidity, check trading volume, order book depth, and use tools like CoinGecko or TradingView. To reduce slippage, use limit orders, avoid low-volume times, or split large trades. Be cautious during major news or weekends when liquidity drops. Always verify volume and adjust slippage settings to prevent costly mistakes. Understanding liquidity helps you trade more efficiently and avoid unexpected losses.