Liquidity is the most important factor in crypto trading. It indicates how easily an asset can be bought or sold without significantly affecting the market price. A trading pair with high liquidity will have large volumes, small bid-ask spreads, and orders can be matched quickly. Conversely, low liquidity makes you susceptible to slippage and difficult to exit positions. This is why many traders prioritize trading top coins or pairs with high volumes. Especially when the market is highly volatile, liquidity becomes even more crucial to protect your account.