#Liquidity101 Liquidity refers to how easily an asset can be bought or sold without affecting its price. #Liquidity101 is key to understanding slippage and trade execution. Highly liquid markets (like BTC/USDT) have many buyers and sellers, which means your orders are filled quickly with minimal price movement. In contrast, low-liquidity assets can result in large price swings and difficulty exiting trades. Liquidity also affects spread—the difference between buy and sell prices. I always check liquidity before trading lesser-known tokens, especially on DEXs, where low liquidity can cause massive slippage. Tools like CoinGecko or DEX aggregators help assess liquidity before jumping into trades.