#liquidity101 the liquidity of a token—whether high or low—has a big impact on its price, trading ease, investor confidence, and overall market behavior.

1. Price Stability

High liquidity means the token can be bought or sold easily without major price changes.

Low liquidity means even small trades can cause big price swings, making the token more volatile.

2. Slippage

In low liquidity, the actual trade price may differ a lot from the expected price (called slippage).

High liquidity helps keep slippage minimal.

3. Investor Confidence

Investors trust high liquidity tokens more because they can enter and exit trades easily.

Low liquidity makes it harder to sell quickly, which creates fear among investors.

4. Market Manipulation

Tokens with low liquidity are easier to manipulate through "pump and dump" schemes.

High liquidity makes it harder to manipulate prices due to strong market depth.

5. Adoption & Utility

High liquidity tokens are usually listed on many platforms and exchanges, making them more useful and accessible.

Low liquidity tokens are less adopted and have limited use.#liquidity101