#Liquidity101 Liquidity is the lifeblood of every crypto market—it’s what lets you enter and exit positions without moving the price against yourself. Deep liquidity means two things: volume (how much trades each day) and depth (how many buy/sell orders sit on the book). Tight bid-ask spreads and minimal slippage tell you that competition among makers is healthy, so a market order won’t cost you extra. On-chain, the equivalent metric is TVL (total value locked) in a liquidity pool: the larger the pool, the smaller the price impact per swap. Before trading any pair, check 24-hour volume, order-book depth at 2% from mid-price, or pool TVL to avoid getting caught in illiquid spikes. Remember: even a great setup can backfire if you can’t get filled at a fair price. Trade where the liquidity flows and let the market work for you.