#Liquidity101

Liquidity is one of the most important concepts in crypto trading. It refers to how easily an asset can be bought or sold in the market without affecting its price. High liquidity means there are many buyers and sellers, making it easier to enter or exit trades at stable prices. Popular coins like BTC and ETH usually have high liquidity, while lesser-known altcoins might suffer from low liquidity, leading to higher slippage. Liquidity also impacts trading volume, order book depth, and overall market health. Traders should always check liquidity before making big moves to avoid unexpected losses.