#Liquidity101

🌊 #Liquidity101 – What does liquidity mean in the crypto market?

Liquidity means the ease of buying or selling a currency without significantly affecting its price.

🔹 If a currency has high liquidity, you will find many buy and sell orders and its price is relatively stable. Like BTC and ETH.

🔹 If liquidity is low, any large transaction could shake the price significantly… and this is risky for traders.

💡 Liquidity affects:

✅ Speed of order execution

✅ Price spreads

✅ Level of security in entering and exiting

📌 Always monitor trading volume before entering any currency… liquidity is the key to a safe exit from the market!