#Liquidity101 liquidity in cryptocurrency trading is the ease with which an asset can be bought or sold without causing significant changes in its price. A market with high liquidity has many buyers and sellers, allowing orders to be executed quickly, with low slippage and reduced spreads. In contrast, in markets with low liquidity, it is more difficult to enter or exit without affecting the price. Liquidity depends on trading volume, the type of crypto asset, and the exchange used.