#Liquidity101 #Liquidity101
Liquidity is one of the fundamental pillars for understanding how financial markets operate, especially in the world of cryptocurrencies. Liquidity refers to the availability of buyers and sellers in the market and how easily an asset can be converted to cash. When liquidity is high, trades can be executed quickly and with minimal price differences. This reduces slippage and provides a more stable trading environment. In markets with low liquidity, large trades can significantly impact prices. Therefore, it is important for traders to pay attention to daily trading volume and market depth when selecting assets.
#Liquidity101
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