#Liquidity101

Liquidity in crypto refers to how easily a digital asset can be bought or sold without significantly affecting its price. High liquidity means there’s a large volume of buyers and sellers, allowing for fast and efficient trades with minimal price slippage. Major cryptocurrencies like Bitcoin and Ethereum typically have high liquidity, especially when paired with stablecoins like USDT or major fiat currencies.

Low liquidity, on the other hand, can result in price volatility and difficulty executing large orders. Liquidity is influenced by factors such as trading volume, market depth, and exchange popularity. For traders, high liquidity means more stable prices and better opportunities for entry and exit.