#Liquidity101 explains a core concept in trading and investing: how easily an asset can be bought or sold without affecting its price. In crypto, liquidity refers to how quickly you can trade a coin or token on an exchange. High liquidity means tighter spreads, faster transactions, and less slippage. Low liquidity can lead to price volatility and difficulty exiting positions. Liquidity depends on trading volume, number of active buyers/sellers, and market depth. Liquidity101 helps beginners understand why liquid markets are safer and more efficient. Whether you’re trading Bitcoin or altcoins, liquidity is crucial to minimizing risk and maximizing opportunity.