#Liquidity101

Liquidity means how easily a crypto asset can be bought or sold without affecting its price. High liquidity = smoother trades and lower slippage. Major tokens like BTC, ETH have high liquidity. Small-cap tokens might be hard to trade due to low liquidity. Exchanges also differ in liquidity. That’s why Binance is preferred—it has one of the deepest liquidity pools. Before trading, check the liquidity of the token and pair. Poor liquidity can lead to losses.