#Liquidity101 Liquidity determines how easily you can buy or sell an asset "without drastically affecting its price".

In crypto, it’s the difference between smooth trading and getting wrecked by slippage. Here’s what you need to know:

Any trader have the ability to quickly convert an asset to cash (or another crypto) near its market price.

- **High liquidity** = Tight spreads, low slippage (e.g. BNB, BTC, ETH).