#Liquidity101
๐ง #Liquidity101 (Crypto Explained)
โ What is Liquidity?
Liquidity = How easily you can buy/sell an asset without big price changes.
๐ High Liquidity
Lots of buyers & sellers
Fast trades, small price impact
โ Example: BTC, ETH
โ ๏ธ Low Liquidity
Few buyers/sellers
Hard to trade, big price swings
๐ซ Example: New or small tokens
๐ง Why It Matters?
High liquidity = smoother trading
Low liquidity = higher risk
๐ก Tip:
Always check volume before trading.
High volume = high liquidity = safer trades
