What is Liquidity in Crypto? (Simple Explanation)

Liquidity means how easily you can buy or sell an asset without moving the price.

🔹 High liquidity =

• Faster trades

• Smaller price impact

• Less slippage

🔹 Low liquidity =

• Harder to sell

• Bigger price jumps

• Higher risk

That’s why: 💡 Bitcoin & top coins feel “stable”

⚠️ Small caps move crazy fast

Before trading any coin, always ask: 👉 “Is there enough liquidity?”

Knowledge protects your capital.

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