#Liquidity101

📚Definition : The ability to buy or sell a coin quickly without affecting its price.

🌊High Liquidity: Easily traded in large volumes with minimal price slippage (e.g., Bitcoin, Ethereum).

🚣Low Liquidity: Harder to trade with large price swings, common in smaller or new coins.

⏳Importance:Ensures smoother transactions and better market stability.

🤯Factors Affecting Liquidity:

1)Trading volume

2)Exchange listings

3) Market capitalization

⚡Market Function: High liquidity attracts institutional investors and reduces risk.

📭Price Impact: Low liquidity can cause significant price fluctuations during trading.