#Liquidity101 - Ever heard the phrase "liquid asset"? In crypto, #Liquidity101 refers to how easily and quickly you can buy or sell a cryptocurrency without significantly affecting its price.
High liquidity means there are plenty of buyers and sellers, leading to:
Smoother transactions: Orders fill fast.
Stable prices: Less volatility, as large trades don't cause huge price swings.
Lower slippage: You get a price closer to what you expected.
Low liquidity, conversely, means fewer participants, making it harder to trade at desired prices and potentially leading to larger price fluctuations. Always consider a crypto's liquidity before trading!
#Liquidity101