#Liquidity101

Liquidity in the crypto world is one of the most important concepts to understand how a market behaves. In simple terms, an asset is liquid when it can be bought or sold easily without significantly affecting its price. For example, Bitcoin and Ethereum usually have high liquidity due to their large trading volume. High liquidity allows entering and exiting a position quickly, which is vital for active traders. On the other hand, assets with low liquidity can be more volatile and difficult to trade. Understanding liquidity helps you make more informed and secure decisions. #Liquidity101