#Liquidity101 In cryptocurrency, liquidity refers to how easily a digital asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, so trades happen quickly and at stable prices. Low liquidity means fewer market participants, which can lead to price swings or difficulty selling the asset. Liquidity is important for traders and investors because it affects transaction speed, market stability, and overall usability of the cryptocurrency. Well-known coins like Bitcoin and Ethereum typically have high liquidity due to their popularity and widespread adoption across many exchanges and platforms.