#Liquidity101 Liquidity is a fundamental concept in the cryptocurrency ecosystem, as it determines how easy and efficient it is to buy or sell an asset without causing a significant change in its price. In a liquid market, there is high participation from buyers and sellers, very narrow spreads (the difference between the buying and selling price), and a deep presence of orders on the book. This facilitates the execution of large trades with minimal slippage, meaning that the price does not move unexpectedly during the transaction.