#Liquidity101 liquidity in cryptocurrencies refers to how easy and quick it is to buy or sell a crypto asset without significantly affecting its price. A market with high liquidity has many buyers and sellers, which allows orders to be executed quickly and with little price variation. For example, Bitcoin and Ethereum are very liquid. In contrast, coins with low volume or little demand may be difficult to sell quickly or at the desired price. High liquidity reduces slippage and improves market efficiency.