#Liquidity101 Here’s a simple Liquidity explanation:

What is Liquidity?

*Liquidity* means how easily you can buy or sell an asset without causing a big change in its price.

* If an asset is [ highly liquid] , you can quickly trade large amounts at stable prices.

* If it’s [low liquidity], even small trades can make prices jump or drop a lot.

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### Why Liquidity Matters?

° Smooth trading: High liquidity means faster orders and less slippage (price difference from expected).

°Better prices: More buyers and sellers create competitive prices.

°Market health: Liquidity shows how active and reliable a market is.

Examples:

* Big coins like **Bitcoin** and **Ethereum** have high liquidity.

* Rare or new tokens often have low liquidity and can be risky to trade.

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Let me know if you want a more detailed or simplified version!