#Liquidity101 Liquidity plays an essential role in the world of cryptocurrencies. It refers to the ease with which an asset can be bought or sold without significantly affecting its price. High liquidity means that there are a large number of buyers and sellers in the market, allowing for quick transactions at fair prices. Conversely, low liquidity can lead to significant gaps between buying and selling prices, increasing costs for traders. Platforms with good liquidity provide a better trading experience. It is also a key indicator of the health of a market.