#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. In crypto and trading, high liquidity means there are many buyers and sellers, allowing for quick, smooth transactions with minimal price slippage. Low liquidity can lead to delays, wider spreads, and volatile price swings. Major coins like Bitcoin and Ethereum usually have high liquidity, while small-cap tokens or new listings may not. Liquidity is vital for traders—it impacts trade execution, price stability, and risk. On exchanges, liquidity pools (in DEXs) or order books (in CEXs) support market activity. Always check an asset’s liquidity before trading. More liquidity = better efficiency and safer trading. It’s a key factor in choosing what and where to trade.