#Liquidity101

Liquidity is one of the most critical aspects of any market, especially in crypto. High liquidity means that an asset can be bought or sold quickly without significantly affecting its price. This is essential for traders looking to enter or exit positions efficiently. Liquidity is influenced by volume, number of active participants, and order book depth. Major coins like BTC and ETH typically have high liquidity, while small-cap tokens may experience slippage. During volatile periods, liquidity dries up fast, creating risk. Understanding liquidity can help you better assess your trade execution and risk. Always look before you leap