Liquidity measures how easily you can buy or sell an asset without affecting its price. High liquidity means tight spreads, faster trades, and more stable prices — ideal for traders. Popular coins like BTC and ETH usually have high liquidity, while low-cap tokens may have slippage or delays. Exchanges with deep liquidity pools offer smoother experiences, especially during market swings. Always check the order book and trading volume before entering a position. Smart traders understand that liquidity is not just a number — it's a key to executing trades efficiently.
