#Liquidity101

Liquidity refers to how quickly and easily an asset can be bought or sold without affecting its price. In trading, high liquidity means tight spreads, fast execution, and less slippage—ideal for active traders. Low liquidity can lead to price volatility and difficulty exiting positions. Major assets like $BTC or $ETH on big exchanges have high liquidity, while small-cap tokens or thinly traded stocks may not. Always check trading volume and order book depth before making moves. Better liquidity = smoother trading. #CryptoBasics #MarketTips #LiquidityMatters