#Liquidity101 large price fluctuations. Fairer prices and faster, smoother transactions are the results of high liquidity. Orders executed at lower prices due to slippage and volatility can result from low liquidity. For example, due to low liquidity, you may receive a worse rate than you would at a large bank when exchanging dollars for euros at an airport. In the cryptocurrency space, a poorly traded token can be more expensive to buy or sell quickly. As liquidity promotes stability, cryptocurrencies are more useful for regular transactions and investments.