#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto, high liquidity means there are many buyers and sellers, allowing fast trades with minimal price changes. It’s essential for stable markets and tight spreads. Low liquidity can lead to slippage and price volatility. Factors influencing liquidity include trading volume, market depth, and the number of participants. Centralized exchanges like Binance offer higher liquidity through deep order books and large user bases. Understanding liquidity helps traders minimize risk and improve execution, making it a key concept in crypto trading success.