Why it matters

Higher liquidity usually means tighter spreads and less slippage. Low-liquidity assets can be harder or more expensive to trade.

Where to check it

Exchange volume, order book depth and trading pair activity are useful signals, but they should be checked carefully.

Related pages

Compare exchanges or read about spreads and slippage.

How to use this term

Use liquidity to judge how easily a trade can execute without a large price move.

What to check

Check order-book depth, volume, spread and whether the pair has enough activity for your trade size.