#Liquidity101 Liquidity refers to how quickly and easily an asset can be bought or sold without causing a big change in its price. In crypto, high liquidity means there are plenty of buyers and sellers, so trades happen fast and with minimal slippage. Major coins like BTC and ETH usually have high liquidity on big exchanges. On the other hand, low-liquidity tokens may experience price swings even with small trades. Liquidity is important for traders because it affects entry and exit prices. Always check volume and order book depth before trading — it's a key risk management step, not just a technical term.