Liquidity plays the role of executing operations smoothly. Low liquidity in the crypto world can lead to slippage, quite unfavorable prices, or even failed trades during volatile market conditions. Therefore, liquidity means the ease with which you can buy and sell an asset without affecting its price and the speed of execution of the trade. When we talk about high liquidity, we have tighter spreads, faster transactions, which is key for smoother market movements and allows us to achieve better returns on our trades. I hope this essential knowledge helps you in your trades #Liquidity101 $BTC
