#Liquidity101

**Liquidity in the Crypto Market: Why Is It Important?**

Liquidity is the ability of an asset to be quickly sold or bought without a significant change in price. In crypto trading, it plays a key role for several reasons:

#### **Why Does Liquidity Matter?**

- **Less Slippage** – in highly liquid markets (e.g., BTC or ETH), orders are executed closer to the desired price.

- **Fast Transactions** – high liquidity means more buyers and sellers, which speeds up order execution.

- **Price Stability** – low liquidity assets are prone to sharp fluctuations due to large orders.

#### **Where to Find Liquidity?**

- **Major Exchanges (Binance, Coinbase, Kraken)** – provide better liquidity for top coins.

- **DEX with High TVL** (Uniswap, PancakeSwap) – liquidity depends on the pools.