💧 #Liquidity101 💧

Liquidity refers to how quickly and easily an asset can be bought or sold without significantly affecting its price. Here’s what you need to know:

🔹 High Liquidity: Assets like large-cap stocks (e.g., Apple, Microsoft) or major currencies (USD, EUR) are easy to buy/sell quickly with minimal price impact.

🔹 Low Liquidity: Assets like small-cap stocks or niche cryptocurrencies might take longer to sell and could require accepting a lower price to attract buyers.

🔹 Why It Matters: High liquidity means less risk of price slippage and easier entry/exit. Low liquidity might mean bigger spreads and more difficulty selling in a hurry.

💡 Pro Tip: Always consider liquidity before investing or trading—especially in volatile markets! 🚀