#Liquidity101

Liquidity in crypto refers to how easily digital assets can be bought or sold without significantly affecting their price. High liquidity indicates a stable market with plenty of active buyers and sellers, enabling smoother transactions and tighter spreads. It is essential for price stability, efficient trading, and minimizing slippage. Major cryptocurrencies like Bitcoin and Ethereum typically have high liquidity due to their widespread adoption and large trading volumes. Conversely, smaller altcoins often suffer from low liquidity, making them more volatile and harder to trade. Overall, liquidity is a critical factor for both traders and investors in the crypto ecosystem.