#Liquidity101 Liquidity 101 – The Lifeblood of Markets
Liquidity means how easily you can buy or sell an asset without affecting its price.
A high-liquidity asset (like BTC or ETH) has lots of buyers and sellers—so trades happen fast and at stable prices.
A low-liquidity asset has fewer participants—making it harder to enter or exit without slippage.
Why it matters:
Low liquidity = bigger spreads, more volatility
High liquidity = smoother trades, better pricing
Projects with poor liquidity can trap you in losing positions
Always check volume and depth before trading—especially on new tokens or DEXs.
Bottom line:
Liquidity = confidence.
Trade where the action is.