#Liquidity101 refers to how easily an asset can be bought or sold in the market without causing a significant impact on its price. In simple terms, it’s about how quickly you can turn your investment into cash. Highly liquid assets, like major cryptocurrencies or blue-chip stocks, have many buyers and sellers, making trades fast and efficient. On the other hand, low-liquidity assets can be harder to sell and may require accepting a lower price. Liquidity also affects slippage, spreads, and the overall efficiency of the market. Understanding liquidity helps traders make smarter decisions, especially in volatile or fast-moving conditions. #Liquidity101