#Liquidity101 Liquidity is key for any financial market, including cryptocurrencies. It refers to how easily an asset can be bought or sold without significantly affecting its price. Markets with high liquidity, such as BTC/USDT, allow for fast and efficient trading with reduced spreads. On the other hand, less liquid pairs can lead to large price fluctuations and greater slippage. Understanding market depth and transaction volume is essential to avoid unnecessary costs. Traders should consider liquidity when choosing pairs and investment strategies to optimize their results.