#OrderTypes101 Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, allowing for fast trades at stable prices—common in major cryptocurrencies like Bitcoin or Ethereum. Low liquidity can lead to price slippage and difficulty executing trades. Liquidity is crucial for a healthy market, ensuring smoother transactions and tighter spreads. Traders should always consider liquidity before entering or exiting a position, especially in smaller or newer tokens where volatility may be higher.

#Liquidity101: More liquidity means more flexibility and less risk in trading.