The ease with which an asset can be bought or sold without affecting its price. High liquidity means tight bid-ask spreads, low slippage, and the ability to execute large orders. BTC and ETH are highly liquid (billions of dollars of daily volume on major exchanges); small-cap tokens may have minimal liquidity, making large orders move the price significantly.
Liquidity
The ease with which an asset can be bought or sold without affecting its price. High liquidity means tight bid-ask spreads, low slippage, and the ability to execute large orders. BTC and ETH are highly liquid (billions of dollars of daily volume on major exchanges); small-cap tokens may have minimal liquidity, making large orders move the price significantly.
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