#Liquidity101 Liquidity 101

Liquidity in crypto means how easily you can buy or sell an asset without impacting its price. High liquidity = fast trades with minimal price slippage. Low liquidity = delays and unexpected price moves. Major coins like BTC and ETH usually have high liquidity, while smaller tokens may not. Traders love liquidity because it brings stability, tighter spreads, and smoother entries or exits. Whether you're a day trader or long-term investor, understanding liquidity helps you manage risk and choose the right markets. It’s not just about price—it's about how quickly and confidently you can move in or out.