#Liquidity101 Liquidity refers to how easily you can buy or sell an asset without affecting its price. High liquidity means quick transactions and narrow spreads (the gap between bid and ask prices), which is ideal for traders. On the other hand, low liquidity can cause slippage, where your order gets filled at a worse price. Exchanges like Binance usually have high liquidity due to large trading volumes. Before trading, always check the liquidity of the token pair to ensure smooth execution and avoid losses. Liquidity is your silent trading partner.