#Liquidity101

Liquidity in crypto trading measures how easily an asset can be bought or sold at stable prices, with high-liquidity pairs (like BTC/USDT) showing tight bid-ask spreads and deep order books for minimal slippage, while low-liquidity altcoins often suffer from price volatility and execution delays—exchanges like Binance and Coinbase provide the highest liquidity, whereas decentralized platforms (DEXs) may face liquidity pool imbalances, making liquidity crucial for traders to enter/exit positions efficiently and avoid excessive price impact during large orders.