#Liquidity101 Liquidity is the ability of an asset to be quickly bought or sold without a significant change in its market price. In cryptocurrency trading, high liquidity means that you can execute a trade almost instantly and at a fair price. Liquidity is influenced by factors such as trading volume, the number of participants, and market conditions. On centralized exchanges, liquidity is usually higher because they aggregate orders from a large number of users. On decentralized platforms, liquidity is provided by pools where users deposit tokens. Liquidity is important: it affects spreads, order execution speed, and overall trading comfort.