#Liquidity101
Ever tried trading a token and felt stuck with no buyers or sellers? Thatโs a liquidity issue.
๐ง Liquidity = How easily an asset can be bought or sold without causing a big price move.
High liquidity means:
โ Faster trades
โ Tighter spreads
โ Less slippage
โ More stability
Low liquidity means:
โ ๏ธ Wild price swings
โ ๏ธ Harder to enter or exit positions
โ ๏ธ Increased risk