#Liquidity101
Liquidity 101 (Crypto Explained):
Liquidity means how easily you can buy or sell a crypto asset without affecting its price.
Key Points:
High Liquidity: More buyers and sellers. Trades are fast, and prices stay stable. (e.g., BTC on Binance)
Low Liquidity: Fewer participants. Harder to trade, with bigger price swings. (e.g., new or small-cap tokens)
Why It Matters:
Better prices — smaller spreads between buy/sell.
Faster execution — orders get filled quickly.
Lower risk — less price manipulation and slippage.
Tip: Trade in high-liquidity markets unless you’re experienced or willing to risk higher volatility.
