#Liquidity101

Liquidity is the ability of an asset to be converted into cash quickly and with little impact on the price. In the crypto market, assets with high liquidity, such as BTC and USDT, have large trading volumes and lower slippage. On the other hand, less popular tokens may be difficult to trade, affecting your strategy.

In DeFi, liquidity depends on the presence of pools and providers. Low liquidity can lead to large price fluctuations on larger orders. Always check volume, spread, and market depth.

Knowing how to analyze liquidity is essential for trading safely and efficiently.