#Liquidity101 What is Liquidity in Crypto?

Liquidity refers to how easily an asset can be bought or sold without causing big changes in its price. In crypto trading, high liquidity means you can quickly trade your coins at stable prices.

↑ For example, Bitcoin and Ethereum are highly liquid because many people are trading them.

◆ Low liquidity means fewer buyers or sellers, which can cause price slippage.

Liquidity is important because it affects how fast you can enter or exit a trade. Traders usually prefer exchanges and tokens with high liquidity for better pricing and less risk.

Always check the trading volume and order book depth before trading, especially with smaller tokens.

#Liquidity101