#Liquidity101 Absolutely! Here's a clear and simple breakdown of Liquidity in trading and crypto using the hashtag #Liquidity101:

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💧 #Liquidity101 – What Is Liquidity and Why It Matters

🔹 What is Liquidity?

Liquidity is how easily you can buy or sell an asset without affecting its price too much.

High liquidity = Many buyers & sellers + tight spreads

Low liquidity = Few participants + wide spreads

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💡 Real-Life Example:

Trying to sell 1 BTC on Binance? Instant. ✅ (High liquidity)

Trying to sell a rare token with no volume? Long wait or bad price. ❌ (Low liquidity)

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🔄 Types of Liquidity:

1. Market Liquidity

Refers to how quickly an asset can be traded.

A liquid market has:

High volume

Tight bid/ask spread

Low slippage

2. Exchange Liquidity (CEX vs DEX)

CEX usually offers better liquidity due to centralized order books.