What does “insufficient liquidity for this trade” mean?

Now, the “Insufficient Liquidity for this trade” error simply means that there is not enough liquidity for the token you’re trying to swap. Another major reason which causes this error is when you’re trying to swap a token on a different version of the exchange (PancakeSwap or Uniswap) when the token has not been migrated to that specific version.

What is liquidity & why is it important?

Liquidity is a method of interpreting a firm’s proficiency in fulfilling its short-term obligations using cash—acquired from the sale of its current assets at a fair market price. Cash ratio, quick ratio, current ratio, and defensive interval ratios measure a company’s financial health. Firms possessing more liquid assets have better credibility.

How to fix “insufficient liquidity for this trade” on pancakeswap?

The first method to fix “Insufficient Liquidity For This Trade” on PancakeSwap is to use the V1 (old) exchange. Firstly, open PancakeSwap and connect your wallet if you haven’t already. At the bottom of the exchange, you’ll see a couple of versions including “V2” and “V1 (old)”.

How to ensure transaction liquidity in decentralized exchanges?

In decentralized exchanges such as PancakeSwap, the only way to ensure transaction liquidity is to use liquidity pools. In this way, some transactions face the problem of insufficient liquidity, because the liquidity pool of supply does not contain enough assets and the transaction is not done properly.