#Liquidity101 The Lifeblood of Trading! 💸
What is liquidity?
Liquidity refers to the ability to buy or sell assets quickly and at a stable price. High liquidity means more buyers and sellers, tighter spreads, and less volatility.
Why is liquidity important?
Reduces trading costs
Increases market efficiency
Provides better price stability
How to identify liquidity?
Trading volume
Order book depth
Market capitalization
Share your thoughts on liquidity! 💬 $XRP