#Liquidity101

Liquidity in crypto is all about how easily you can buy or sell an asset without drastically moving its price. High liquidity means there are many buyers and sellers, making transactions smooth and efficient. Think of it like a bustling market where you can always find someone to trade with.

Low liquidity, on the other hand, means fewer participants. This can lead to larger price swings and make it harder to enter or exit positions at your desired price. For traders, high liquidity is crucial as it ensures your orders fill quickly and at predictable prices, reducing the risk of slippage. Always consider an asset's liquidity before trading, especially on platforms like Binance.