Liquidity refers to how easily you can buy or sell an asset without significantly affecting its price. Highly liquid markets, like BTC/USDT, mean you can trade large amounts with minimal slippage. Low liquidity, on the other hand, often leads to price spikes and poor fills. For traders and investors alike, understanding liquidity helps you choose the right trading pairs and avoid unnecessary losses. Always check trading volume and the order book depth before entering a position. The more liquid an asset, the safer and more efficient your trade will be.
