#Liquidity101

Liquidity: The Hidden Engine of Every Crypto Trade

Liquidity is the lifeblood of crypto trading — yet many overlook it. It measures how easily you can buy or sell an asset without moving its price. High liquidity means tighter spreads, faster execution, and less slippage. For instance, trading $SOL /USDT on Binance feels seamless because buyers and sellers are constantly active.

On DEXs, liquidity depends on pooled funds. If a pool is shallow, even small trades can shift prices dramatically. It’s not just about the coin — it’s about the depth behind it. Before you click “buy,” ask: Can I exit just as easily?