#Liquidity101

Liquidity refers to how quickly and easily an asset can be bought or sold in the market without affecting its price. High liquidity means you can trade large amounts of an asset quickly at stable prices. In crypto or stock markets, assets like Bitcoin or popular stocks have high liquidity because many buyers and sellers are active. Low liquidity means fewer participants, making trades slower and prices unstable. Liquidity is crucial for traders, as it affects transaction speed, slippage, and market stability. Always check an asset’s liquidity before trading to ensure smooth, efficient, and fair transactions in any market.