#Liquidity101 #Liquidity101

> Liquidity is an essential concept in crypto trading. It represents the ease with which an asset can be bought or sold without significantly impacting its price. The more liquid a market is, the faster orders are executed at fair prices. Major cryptocurrencies like BTC or ETH are highly liquid because they are traded in large volumes. Conversely, lesser-known tokens may suffer from a lack of liquidity, making transactions riskier. Understanding liquidity helps avoid slippage and better plan trades.