#Liquidity101

💧 What Is Liquidity and Why Does It Matter?

Liquidity refers to how easily an asset can be bought or sold without causing a significant impact on its price. In crypto markets, high liquidity means tighter spreads, faster trades, and more accurate price execution. It creates a smoother trading experience — especially important for large trades or volatile conditions.

On the flip side, low liquidity can lead to slippage, wider spreads, and even failed orders. It’s a key factor to consider when choosing a trading pair or exchange.

Liquidity isn’t just a buzzword — it’s a trader’s secret weapon. Know it. Use it.