#Liquidity101 Liquidity 101 – What is liquidity that everyone talks about?

In crypto, liquidity is a vital factor. Simply put, liquidity is the ability to buy and sell quickly without causing significant price fluctuations.

For example: You want to sell 1,000 USDT – if that coin has high liquidity, you sell it right away, with no price slippage. But if the coin has low liquidity, you sell one order and the price drops like a mood swing, because... there’s no one buying it in time!

High liquidity = many buyers and sellers = less risk.

Low liquidity = easy to get “stuck” or hit with a bad price.

When investing, don’t just look at the chart – check the trading volume, the listing exchange, and popularity. Good liquidity allows you to enter and exit comfortably, without having to wait for a “rescue.”

The hard-earned experience of long-term holders: it's better to take small profits than to aim for a 3x return and get stuck.