#Liquidity101 #Liquidity101 Liquidity in crypto refers to how easily a digital asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, enabling quick trades at stable prices. Major cryptocurrencies like Bitcoin and Ethereum typically have high liquidity due to their large trading volumes and market participation. Low liquidity, often seen in smaller or newer tokens, can lead to price slippage and difficulty executing large trades. Liquidity is crucial for healthy market functioning, fair pricing, and reduced volatility. It is influenced by factors like exchange listings, trading volume, and market sentiment. Deep liquidity also attracts institutional investors, enhancing stability and confidence in the crypto ecosystem.