#Liquidity101 Liquidity refers to how easily you can buy or sell a crypto asset without affecting its price. High liquidity means there are many buyers and sellers, making it easier to trade quickly and at stable prices. Popular coins like BTC or ETH usually have high liquidity. Low liquidity, often found in newer or niche coins, can cause price slippage and make trading harder. Traders should always check a coin's liquidity before entering or exiting a position. It affects your strategy, especially if you're dealing with large volumes or short-term trades.