#Liquidity101

💧 What is liquidity in crypto?

Liquidity is how easily you can buy or sell an asset without a significant change in price.

A simple example:

🔹 High liquidity = many buyers and sellers → quick transaction at a fair price.

🔸 Low liquidity = hard to find someone to buy/sell → more slippage, worse price.

🔥 What does liquidity affect?

• Spread between bid and ask

• Ease of entering and exiting a position

• Market stability

📊 Always check liquidity before trading, especially on new tokens!

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