#Liquidity101 Liquidity 101 – What is liquidity that everyone talks about?”

In crypto, liquidity is a vital factor. Simply put, liquidity is the ability to buy and sell quickly without causing significant price fluctuations.

For example: You want to sell 1,000 USDT – if the coin has high liquidity, you sell it immediately, with no slippage. But if the coin has low liquidity, you execute one order and the price drops like a mood swing because… there’s no one to buy it in time!

High liquidity = many buyers and sellers = less risk.

Low liquidity = easy to get “stuck with inventory” or encounter bad prices.

When investing, don’t just look at the chart – consider trading volume, the exchange it’s listed on, and its popularity. Good liquidity allows you to enter and exit comfortably, without waiting for a “rescue.”