#Liquidity101 Liquidity in crypto, the fuel for your trades!

Listen up, folks, if you're into the world of cryptocurrencies, there's one word you absolutely need to understand: liquidity. It's not a fancy word to show off; it's the key to making your trades go the way you want!

Imagine you want to buy or sell a cryptocurrency. Have you ever experienced asking for a price and ending up buying/selling at a much worse one? Or your order takes ages to execute? Well, that's because the liquidity was low.

What is liquidity, in plain English?

Think of the market like a fair. If there are a lot of people buying and selling the same thing (many stands of "arepas" and plenty of people wanting to buy them), it's super easy to get your arepas at the price you want and have them handed to you instantly. There is a lot of "fluidity."

But if there's only one stand of arepas and no one else buying or selling, if you want one, the vendor can ask whatever they want, or if you want to sell yours, no one is going to buy them quickly. That is low liquidity!

In the crypto world, liquidity refers to how easily and quickly you can buy or sell an asset (a cryptocurrency) without the price moving much because of your trade.