#Liquidity101 Liquidity 101 – The Lifeblood of Markets

Liquidity means how easily you can buy or sell an asset without affecting its price.

A high-liquidity asset (like BTC or ETH) has lots of buyers and sellers—so trades happen fast and at stable prices.

A low-liquidity asset has fewer participants—making it harder to enter or exit without slippage.

Why it matters:

Low liquidity = bigger spreads, more volatility

High liquidity = smoother trades, better pricing

Projects with poor liquidity can trap you in losing positions

Always check volume and depth before trading—especially on new tokens or DEXs.

Bottom line:

Liquidity = confidence.

Trade where the action is.