#Liquidity101
Liquidity in the crypto world represents the ease with which you can buy or sell an asset without significantly affecting its price. A market with high liquidity has many buy and sell orders, allowing for quick executions and minimal spreads. In contrast, in markets with low liquidity, prices can fluctuate drastically with small movements. Choosing pairs with high liquidity is crucial to minimizing costs and operating more efficiently, especially if you are handling large volumes.