#Liquidity101 Liquidity101: Why It Matters in Trading

*Liquidity101* explains a crucial concept in trading—*liquidity*, or how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, leading to faster trades and tighter spreads. Assets like Bitcoin or ETH on major exchanges have high liquidity, making them more stable and easier to trade. Low liquidity can cause price slippage and delays in execution. Traders prefer liquid markets for better pricing and lower risk. Understanding liquidity helps you choose the right assets, time your trades better, and avoid costly mistakes in volatile markets.