#Liquidity101

Liquidity is the ability of a crypto asset to be bought or sold without significantly affecting the market price. The higher the liquidity, the easier and faster transactions can be executed. Major pairs like BTC/USDC have high liquidity due to many active buyers and sellers. Conversely, small-cap assets often experience high slippage due to low liquidity. Smart traders always check the order book and daily volume before entering a position. Liquidity also affects spreads and exit risk. Without sufficient liquidity, large profits can turn into losses when there are no buyers. Remember: liquidity is the lifeblood of the market.