📘 $Liquidity101 – What It Means in Crypto 🔄💰

Liquidity = How quickly and easily a crypto asset can be bought or sold without affecting its price too much.

🔹 High Liquidity

✅ Lots of buyers & sellers

✅ Tight bid-ask spreads

✅ Easier, faster trades

✅ More stable prices

🔹 Low Liquidity

⚠️ Fewer market participants

⚠️ Harder to enter or exit positions

⚠️ Prices can swing wildly

⚠️ Risk of slippage (selling lower or buying higher than expected)

💡 Why It Matters:

More liquidity = smoother trading & less risk

Less liquidity = higher volatility & potential losses

📊 Always check liquidity before jumping into any trade — especially with small-cap or new tokens!