#Liquidity101 Liquidity measures how easily an asset can be bought/sold without impacting its price. In crypto, high liquidity means:

- Tight spreads (small difference between bid/ask)

- Fast trade execution

- Lower slippage in large orders

Major exchanges (Binance, Coinbase) provide deep liquidity for top pairs (BTC/USDT), while low-cap altcoins often suffer from thin order books. Liquidity pools in DeFi (like Uniswap) let users earn fees by supplying tokens—but face impermanent loss risks. Market makers and arbitrage bots help maintain liquidity. Always check trading volume and depth charts before entering positions—illiquid assets are volatile and harder to exit.