Liquidity is one of the most important aspects of any trading market, especially in crypto. It refers to how easily an asset can be bought or sold without causing a significant impact on its price. High liquidity means there's a large number of buyers and sellers, making trades faster and more efficient. On platforms like Binance, high-liquidity pairs tend to have tighter spreads and less slippage. In contrast, low-liquidity assets can lead to price volatility and trade delays. As a trader, choosing assets with good liquidity ensures smoother execution and better control over entry and exit points.
