Liquidity is a fundamental pillar in the world of trading, whether traditional or crypto. It represents the ease with which an asset can be bought or sold without influencing its price. High liquidity means faster transactions and fair prices. For traders, this is essential: less slippage, more efficiency. It depends on the volume, the frequency of trades, and the number of participants in a market.

Understanding this concept allows for a better assessment of the health of a platform or a token. A good mastery of liquidity also improves risk management.#Liquidity101