#Liquidity101 What is liquidity in simple words?
Imagine you want to sell your bitcoin. If you can do it quickly and at a fair price — the market is liquid.
If you have to search for a buyer like Wi-Fi in the woods — that's a problem. 😅
💧 Liquidity = Fluidity. Imagine a glass of water:
Easy to pour, easy to spill — 💧 high liquidity.
The water has frozen — 🧊 low liquidity.
Instead of water — concrete... well, you get it. 🪨
📈 On the exchange, this means:
✅ High trading volume
✅ Many buy and sell orders
✅ Minimal spread between prices
🔄 Why is it important?
Want to exit a position — you don't lose on the price.
Want to enter an altcoin — you don't move the market with one click.
💡 A liquid market = a vibrant market. Keep an eye on volumes, don't trade in the desert.