#Liquidity101

What is Liquidity?

Liquidity means how easily you can buy or sell a coin without affecting its price. A coin with high liquidity has many buyers and sellers, making it easier to trade quickly with low slippage. I once bought a low-volume coin and couldn’t sell it without dropping the price a lot—that’s low liquidity. Now I always check trading volume before entering a trade. High liquidity means tighter spreads and faster transactions. It also signals more market trust. Whether you’re trading on a CEX or DEX, liquidity should always be part of your analysis before placing any trade.