Liquidity101 #Liquidity101 Liquidity in crypto trading refers to the ease of buying or selling an asset without significantly affecting its price. High liquidity, often seen in popular coins like Bitcoin, ensures tight bid-ask spreads, faster trade execution, and minimal slippage, making trades efficient and cost-effective. Low liquidity, common in smaller altcoins, can lead to wider spreads, slower execution, and higher slippage, increasing costs and risks. Liquidity also impacts market stability—illiquid markets are more volatile, amplifying price swings. For traders, understanding liquidity is key to optimizing strategies, managing risks, and ensuring smooth execution in dynamic crypto markets