#Liquidity101 Liquidity in crypto refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, enabling fast, stable trades with minimal slippage. Major coins like Bitcoin and Ethereum typically have high liquidity due to heavy trading volume. Low liquidity, often seen in smaller tokens, can lead to price spikes or delays when trading. Liquidity is essential for efficient markets, better price discovery, and lower risk. It’s also a key factor when choosing exchanges or tokens, as it impacts how smoothly you can enter or exit positions at fair prices.