#Liquidity101 Liquidity is how easily you can buy or sell a crypto asset without affecting its price too much. High liquidity means lots of buyers and sellers, making trades faster and more efficient with minimal slippage. Low liquidity can lead to delays, bigger spreads, and unexpected price swings. It’s influenced by trading volume, market activity, and the depth of the order book. Good liquidity helps you enter and exit trades smoothly, especially during volatile moves. Understanding liquidity is key for risk management and smart decision-making—because in crypto, it’s not just what you trade, but how easily you can trade it.