#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means tighter spreads and faster trades, while low liquidity can lead to higher slippage and difficulty entering or exiting positions. Major coins like BTC and ETH are very liquid, whereas small-cap tokens might have low liquidity, making them risky. In trading, liquidity matters a lot—especially for large orders or short-term strategies. Before entering a trade, always check the order book and volume. Poor liquidity can turn a good trade into a bad one very quickly.