#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. In crypto trading, high liquidity means tighter spreads, faster order execution, and reduced slippage—essential for both beginners and pros. For example, ETH/USDT is one of the most liquid trading pairs, allowing you to enter and exit positions with ease. Low liquidity pairs, on the other hand, may result in large price swings and poor trade fills. Liquidity is often deeper on centralized exchanges, but top DEXs are catching up. Always check trading volume and order book depth before executing large trades to manage risk effectively.