#Liquidity101 – Why It Matters in Crypto Trading 💧

Ever wonder why some tokens are easy to trade while others feel “stuck”? The answer is liquidity.

🔹 What is Liquidity?

Liquidity is how easily you can buy or sell an asset without affecting its price too much.

✅ High liquidity = Fast trades, low slippage, tighter spreads

⚠️ Low liquidity = Slow trades, big price swings, higher risk

📊 Example:

BTC/USDT has high liquidity — trades execute fast with little price change.

A small altcoin pair may have low liquidity — one big order can move the price drastically.

💡 Why You Should Care:

Traders need liquidity for smooth execution.

Investors need it to enter and exit positions safely.

Projects need it to attract users and capital.

🚨 Pro Tip: Always check liquidity before trading low-cap coins!