#Liquidity101 explains a core concept in crypto trading—liquidity. Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means more buyers and sellers, tighter spreads, and faster trades—common on major exchanges like Binance. Low liquidity can cause price slippage and delays. Liquidity is vital for smooth market function, accurate pricing, and efficient execution. It’s influenced by trading volume, exchange popularity, and token utility. Traders should always consider liquidity before entering a trade—it affects both cost and risk. In short, better liquidity means better trading conditions. Know it. Use it. Trade smart.