What is Liquidity in Crypto?

Liquidity means how easily you can buy or sell a coin without affecting its price too much. A coin with high liquidity has a lot of buyers and sellers, which makes trading smooth.

✅ High Liquidity:

Fast buying & selling

Stable price

Lower risk of big slippage

❌ Low Liquidity:

Hard to enter or exit trades

Price moves quickly with small orders

Higher risk

📊 Example: Bitcoin (BTC) and Ethereum (ETH) have high liquidity because millions of people trade them daily. But new or small coins often have low liquidity, making them riskier.

💡 Tip: Always check liquidity before trading. High liquidity = safer and smoother trades

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