💧 #Liquidity101 : What is Liquidity in the Market? 📊
Liquidity is the ease of buying or selling an asset without affecting its price. 🔁💰
📈 High liquidity: Many buyers and sellers — quick transactions with little spread. Ex: Bitcoin on major exchanges. ⚡🔄
📉 Low liquidity: Little activity — hard to execute large orders without moving the price. Ex: lesser-known tokens. 🐌💸
💡 More liquidity = less risk of slippage and more efficient execution.
Always analyze liquidity before entering a trade! 🧐📉