#Liquidity101

to the core concept in the crypto market, reflecting the ability to buy and sell assets without causing significant price fluctuations. A highly liquid asset like BTC or ETH is usually easy to trade with low spreads, high volume, and quick order matching. In contrast, low liquidity tokens are prone to slippage, manipulation, and are difficult to exit. Exchange liquidity is also important – an exchange with good liquidity helps stabilize trading. Investors should assess liquidity before placing orders to manage risk effectively and avoid unwanted losses.