#Liquidity101 breaks down a key concept in trading and investing. Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, allowing quick trades with minimal price changes—common in assets like Bitcoin or large-cap stocks. Low liquidity can cause slippage and delays, often seen in small tokens or niche markets. Liquidity also affects spreads, volatility, and overall market efficiency. Traders prefer high liquidity for stability and reliability. Understanding liquidity helps you choose better entry and exit points. #Liquidity101 is vital for making informed market decisions.