#Liquidity101 Imagine that liquidity is like water in a river. If there is a lot of water (high liquidity), the river flows smoothly and you can navigate through it easily. In the crypto world, if there is a lot of liquidity, it means that there are a lot of people buying and selling a cryptocurrency, which makes it super easy to put in or take out your money without the price going crazy.

Now, what happens if the river has little water (low liquidity)? Well, you can get stuck, right? In cryptos, if a coin has low liquidity, trying to buy or sell large amounts can cause the price to move sharply, as if it takes a leap. We call that "slippage." Imagine you want to buy $1000 of a crypto, and since there aren't many people selling, the price suddenly jumps by 5% just because of your purchase. That's not good for your wallet!