#Liquidity101 Liquidity is one of the most important — yet often overlooked — concepts in crypto trading. Simply put, liquidity refers to how easily you can buy or sell an asset without causing a significant price change. High liquidity means tighter spreads, faster execution, and more stability, which is why major pairs like BTC/USDT tend to have better trading conditions. Low liquidity can lead to slippage and volatile price swings, especially during large trades or in smaller markets. Whether you're using a CEX like Binance or a DEX, understanding liquidity helps you time your trades better and manage risk effectively.