#Liquidity101 Liquidity is the lifeblood of the crypto market. It determines how easily assets can be bought or sold without impacting the price. Understanding liquidity helps traders make informed decisions and manage risk effectively.

🚀 High Liquidity – More buyers and sellers, leading to smoother transactions and tighter spreads.

⚠️Low Liquidity– Fewer market participants, causing price volatility and potential slippage.

💰 Liquidity Pools– Users contribute assets to decentralized exchanges (DEXs) to facilitate trading and earn rewards.

🔄 Market Makers – Entities that provide liquidity by placing buy and sell orders to ensure flow.

Knowing how liquidity works can improve your trading strategies and minimize unexpected price movements. Stay informed and trade smart!