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Bilal_Hussain Ali
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#Liquidity101 Understanding liquidity is essential in crypto and traditional finance alike. Here's a quick breakdown: 🔹 What is Liquidity? It refers to how easily an asset can be bought or sold without significantly affecting its price. The higher the liquidity, the smoother the trade. 🔹 High Liquidity = Tight spreads, fast execution, stable prices. 🔹 Low Liquidity = Bigger spreads, price slippage, higher volatility. In crypto, liquidity is affected by: Exchange volume Market makers Token supply Investor interest External events (like Ripple’s delayed XRP unlock)
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