#Liquidity101

Here's the concise translation of the liquidity summary (**under 100 words**):

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**Liquidity** = Ease of converting assets to cash without significant value loss:

- **Liquid assets**: Cash, stocks, major currencies (e.g., USD).

- **Illiquid assets**: Real estate, art.

### Key Contexts:

1. **Financial Markets**:

- High liquidity = Fast trades at stable prices (e.g., blue-chip stocks).

- Low liquidity = Hard to sell (e.g., property).

2. **Businesses**:

- Measured by **liquidity ratios** (e.g., Current Ratio ≥1.5).

3. **Crypto**:

- **Liquidity pools** (e.g., Uniswap), with **impermanent loss** risk.

### Bottom Line:

Liquidity = Flexibility to access funds when needed.

**Low liquidity** → Losses/insolvency risk.

**High liquidity** → Safety & efficient transactions.

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