#Liquidity101 The Importance of Liquidity in Cryptocurrency Trading

Liquidity in cryptocurrencies refers to the ease of buying or selling an asset without affecting its price. For example, Bitcoin (BTC) has high liquidity: you can sell 1 BTC quickly near the market price. In contrast, a little-known altcoin may have low liquidity; selling a moderate amount could cause *slippage*, receiving less money than expected.

Markets with high liquidity (like Binance or Coinbase) offer tighter spreads and quick executions. For traders, this means lower costs and less risk. **Conclusion:** prioritize assets with good liquidity to trade efficiently.