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The tutorial explains the concept of liquidity in cryptocurrency by comparing it to swimming in water. Just as a shallow pool makes swimming difficult due to low water volume, a market with low liquidity complicates buying or selling cryptocurrencies. Liquidity refers to the ease of converting crypto assets into cash or other assets without significantly affecting their price. In a high-volume market, like Bitcoin, trades can occur with minimal price impact, allowing for fair transactions. Thus, liquidity is essential for smooth trading experiences, akin to the difference between swimming in a small pool versus the vast ocean.
