#Liquidity101 – Don't Get Stuck Trading! 💧📉
Have you ever heard the terms "liquid" or "not liquid" in the world of crypto or stocks? Well, it all has to do with liquidity. But... what does it actually mean? Let's discuss! 👇
🔹 What Is Liquidity?
Liquidity refers to how easily and quickly an asset can be bought or sold without causing a drastic change in price.
The higher the liquidity = the smoother the transactions, the smaller the difference between buying & selling prices (spread). 🚀
🔹 Characteristics of Liquid Assets:
✅ Many active buyers & sellers
✅ High trading volume
✅ Small spread
✅ Thick order book
🔹 Why Is Liquidity Important?
📌 So you can enter and exit the market smoothly
📌 Avoid extreme slippage
📌 Indicates market confidence in the asset
⚠️ Less liquid assets are prone to getting stuck or causing losses if you rush to sell.
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Tip: Before buying an asset, check its liquidity first! Don't just look at the rising price 🚀, but make sure you can sell it later too 😅
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#Crypto101 #BelajarCrypto #AnakMudaMelekKeuangan #DYOR 💡