#Liquidity101
Liquidity refers to the ease and speed of buying or selling an asset without significantly affecting its price.
📉 High liquidity means a large number of buyers and sellers. You can trade quickly, with narrow spreads and minimal impact on the price.
📈 Low liquidity means fewer market participants. This leads to price slippage, wider spreads, and even order failures during periods of high volatility.
💸 Example:
If you are buying Bitcoin worth $1000💲
