#Liquidity101

Liquidity measures how easily an asset trades without price impact.

**High Liquidity:**

- Tight bid-ask spreads

- Low slippage

- Fast execution

**Low Liquidity:**

- Large price gaps

- High slippage risk

- Delayed fills

**Why It Matters:**

- Traders: Better prices, faster exits

- Projects: More stability, less manipulation

**Check Liquidity By:**

- Trading volume (24h)

- Order book depth

- Slippage tolerance tests

Illiquid tokens = higher risk. Always verify before trading!