#CryptoFees101 Liquidity refers to how easily an asset can be converted into cash without significantly impacting its price. It is a fundamental concept in finance and investment.

- Market Demand: High demand for an asset increases its liquidity.

- Market Conditions: Economic crises can reduce liquidity.

- Regulatory Environment: Regulations can affect the ease of trading assets.

Understanding liquidity is essential for making informed investment decisions and effectively managing risk. Always ensure to assess the liquidity of an asset before investing.