#Liquidity101 Liquidity is one of the most important concepts in crypto trading. It refers to how easy and quick you can buy or sell an asset without affecting its price. A market with high liquidity has many buyers and sellers, which means low spreads, fast executions, and less unexpected volatility. In contrast, an asset with low liquidity may experience sharp movements and difficulty closing trades at the desired price. Large exchanges and popular tokens tend to have better liquidity. Volume, market depth, and the time of day also play a role. Understanding liquidity helps you make better entry and exit decisions and avoid surprises.