#Liquidity101 Imagine you are at a currency exchange office in the airport. You hand over your dollars and quickly receive euros in return. The process is smooth and the price seems fair. This simple exchange illustrates how liquidity works. It ensures that there are enough buyers and sellers, which facilitates transactions and keeps prices stable.

In cryptocurrency trading, liquidity is even more important. Cryptocurrency markets are still growing and not all assets are traded with the same frequency. A liquid cryptocurrency market allows traders to buy and sell without delays or unexpected price spikes.