#Liquidity101

Liquidity in crypto refers to how easily a cryptocurrency can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, allowing for fast, smooth transactions with minimal price slippage. Major coins like Bitcoin and Ethereum typically have high liquidity due to their large trading volumes. Low liquidity, often found in small-cap or obscure tokens, can lead to price volatility and difficulty executing trades. Liquidity is crucial for healthy markets, encouraging participation and stability. It's influenced by exchange volume, market depth, and availability on multiple platforms. Liquidity pools in DeFi also enhance access and flexibility.