#Liquidity101

Understanding the engine of the crypto market

Liquidity is one of the most important concepts in the world of cryptocurrencies. It refers to the ease with which an asset can be bought or sold without causing significant changes in its price.

🔁 High liquidity means that there are many active buyers and sellers, allowing orders to be executed quickly and with little slippage. This is typical in pairs like BTC/USDT or ETH/USDT on large exchanges.

⚠️ In contrast, low liquidity implies more difficulty in closing trades, greater volatility, and the risk of sharp price movements. This often occurs with new or lightly traded tokens.

📊 For traders, understanding liquidity is key to choosing efficient pairs, avoiding unnecessary losses, and optimizing strategy.