#Liquidity101 Liquidity in crypto refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, allowing for quick trades with minimal slippage. Major coins like BTC and ETH have high liquidity, while smaller tokens may have low liquidity, leading to price volatility. Exchanges and liquidity pools on decentralized platforms help maintain liquidity. Traders prefer liquid markets for smoother entries and exits. Low liquidity can trap funds, cause large spreads, and impact trade execution. Understanding liquidity is key to managing risk and ensuring efficient trading in the crypto space.