#Liquidity101 The Lifeblood of Smooth Crypto Trading

As a trader who starts every dawn poring over macro headlines and order books, I know that liquidity isn’t just a buzzword—it’s the difference between a crisp execution and a costly slip.

🔍 What Is Liquidity?

Liquidity measures how easily you can buy or sell an asset without moving its price too much.

• High liquidity = tight spreads, deep order books → minimal slippage.

• Low liquidity = wide spreads, shallow depth → big price impact on your fills.