#Liquidity101 In the world of crypto, liquidity refers to how easily an asset can be bought or sold without causing a significant change in its price. High liquidity means there are many buyers and sellers, allowing trades to happen quickly and at stable prices. This is common in large exchanges or with popular tokens like BTC or ETH. Low liquidity, on the other hand, can lead to price slippage and delays in order execution. Liquidity is essential for market efficiency, smoother trading, and reduced volatility. Traders, especially those using large volumes, often prefer high-liquidity markets to minimize risks and maximize precision in their trades.