Liquidity
How easily an asset can be bought or sold without significantly affecting its price.
intermediate
trading
Explained Simply
High liquidity means large orders can be filled quickly at close to the current market price. Low liquidity means even small trades can cause big price swings (slippage). Bitcoin on Binance has very high liquidity. A small altcoin on a DEX may have very low liquidity. Liquidity affects your trading costs — always check before making large trades.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.