Liquidity is key for any market, but in crypto, it is even more important. Basically, a liquid market allows you to buy or sell assets without causing large changes in price. If you try to sell a crypto with low liquidity, you will likely have to accept a lower price. Binance, for example, has high liquidity in pairs like BTC/USDT, which ensures better order execution. Additionally, when there is high liquidity, the spread (the difference between the buying and selling price) is smaller. For active traders, this can make the difference between a profitable trade and a loss.
