#Liquidity101

Liquidity refers to how easily an asset can be bought or sold in the market without affecting its price. In the crypto world, high liquidity means that you can trade a coin quickly and at a stable price, while low liquidity can lead to slippage and unexpected price changes. Coins like BTC and ETH have high liquidity due to their massive trading volume and exchange listings. Liquidity is essential for both traders and investors because it ensures fast execution and fair prices. When choosing a coin or token, always check its liquidity, especially if you're planning to invest a large amount.