#Liquidity101 Liquidity in cryptocurrencies refers to the ease with which an asset can be bought or sold without causing significant changes in its price. A market with high liquidity has many active buyers and sellers, allowing for quick transactions at stable prices. This is essential to avoid losses due to slippage during trades. Pairs with good liquidity, such as BTC/USDC, offer greater efficiency and lower risk. Liquidity comes from exchanges, traders, and pools on DeFi platforms. Without it, a market becomes volatile, slow, and risky. It is a key factor for investing and trading safely.