#Liquidity101 #Liquidity101 Liquidity in cryptocurrency refers to the ability to buy or sell a digital asset quickly and at a stable price. It measures how easily a coin or token can be converted into cash or another asset without significantly affecting its market price. High liquidity in crypto markets is characterized by a large number of buyers and sellers, tight bid-ask spreads, and minimal price volatility, making it easier for traders to enter or exit positions. Conversely, low liquidity can lead to significant price swings and increased trading risks.