#Liquidity101 Liquidity is how easily you can buy or sell cryptocurrency without significantly impacting its price.
High liquidity is when there are many buyers and sellers willing to trade.
Transactions happen quickly, without delays and "slippages" in price.
Low liquidity is when the market is "dry": few buyers or sellers.
It is more difficult to close a trade, there may be delays and unpleasant surprises in price.
$BTC
Conclusion: the higher the liquidity, the more convenient and safer it is to trade.