Liquidity refers to how easily an asset can be bought or sold without drastically changing its price. High liquidity means tight spreads and quick order execution—great for traders looking for efficiency. Low liquidity, however, can cause significant price swings and wider spreads, increasing costs. In #Liquidity101 you’ll learn that major trading pairs like BTC/USDT, thanks to significant buy and sell volume, allow smooth and predictable trades. In contrast, smaller crypto pairs often come with erratic price behavior and poor order execution. As a trader, prioritizing liquidity means better price execution, minimal slippage, and a smoother experience overall.