#Liquidity101

#Liquidity101

Liquidity is the lifeblood of any trading market. In simple terms, it measures how easily you can buy or sell a crypto asset without causing big price swings. High liquidity means tighter spreads, faster trades, and more stable prices — ideal for active traders. Low liquidity can lead to slippage, delays, and unpredictable moves. Major coins like BTC and ETH have high liquidity on big exchanges, while lesser-known tokens may not. Whether you're day trading or investing long-term, always check liquidity — it can make or break your trade. Smart traders don’t just watch price, they watch volume too.