#Liquidity101 In cryptocurrency trading, liquidity is even more important. Cryptocurrency markets continue to grow, and not all assets are traded with the same frequency. A liquid cryptocurrency market allows traders to buy and sell without delays or unexpected price increases. Whether you are new to trading or an experienced investor, liquidity affects how easily you can trade, the fairness of prices, and the confidence you feel in your investments. It helps you enter or exit trades smoothly, without losing money due to large price differences or slippage. High liquidity attracts more investors, as it reduces the risk of slippage and allows trading large volumes without impacting the price. Exchanges like Binance and Coinbase often offer high liquidity in pairs like BTC/USDT or ETH/USD.