#Liquidity101

Liquidity is the lifeblood of any trading market. In simple terms, it refers to how easily you can buy or sell an asset without causing a major price impact. High-liquidity tokens like $BTC or $ETH have deep order books — you can move big amounts quickly with minimal slippage. That’s ideal for active traders.

Low-liquidity tokens, on the other hand, can be risky. Even small trades might move the price dramatically, which opens the door to manipulation, volatility, and poor execution. This is why experienced traders always check liquidity before entering a position.

Remember: fast in, fast out — only if liquidity allows.