#Liquidity101
Liquidity in crypto refers to how quickly and easily you can buy or sell an asset without causing big price changes. High liquidity means there are plenty of buyers and sellers, so trades happen fast and at expected prices. This creates a stable and efficient market. Low liquidity, on the other hand, can lead to slippage—where you get a worse price than expected—and slower transactions. Popular coins like Bitcoin and Ethereum usually have high liquidity, while lesser-known tokens may not. As a trader, I always check liquidity before entering a trade to ensure smooth execution and avoid unnecessary risks.
