#Liquidity101 What is liquidity and why is it so important in crypto?
When you hear that a market has "good liquidity," you are actually hearing this:
🔁 You can buy or sell quickly, without affecting the price too much.
📊 In the crypto world, liquidity is what allows trades to be executed smoothly, without large price fluctuations.
🔎 If you are trading, you need to understand:
• How easy is it to exit a position?
• Are there enough buyers and sellers in that pair?
• How big is the "spread" between supply and demand?
🌊 In summary, more liquidity = less risk when trading.
