#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto, high liquidity means faster trades and smaller spreads between bid and ask prices. Major coins like BTC or ETH have high liquidity on big exchanges. Low liquidity means fewer buyers/sellers, which can lead to price slippage or difficulty exiting trades. Liquidity also affects project health—more liquidity = more confidence. In DeFi, liquidity pools help DEXs operate by incentivizing users to deposit tokens. Understanding liquidity helps you avoid traps and trade more efficiently. Don’t ignore it—it’s the hidden fuel of crypto markets!