💧 #Liquidity101 | What Is Liquidity in Crypto and Finance?
Liquidity = How easily an asset can be bought or sold without affecting its price.
Think of it like water 💦 — the more there is, the smoother things flow.
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🔍 High Liquidity
✔ Easy to trade
✔ Tight bid-ask spreads
✔ Low price impact
✔ Example: BTC/USDT on Binance
🔍 Low Liquidity
❌ Harder to trade
❌ Wide price spreads
❌ Bigger slippage
❌ Example: New or low-volume tokens on small DEXs
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🏦 Why It Matters
Traders want low slippage
Investors want price stability
Projects need liquidity to attract users
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💡 Tip: Always check liquidity before investing — high APY on a low-liquidity pool can be a trap!
#CryptoBasics #TradingTips #Liquidity #CryptoEducation #DeFi #DEX #CEX #Crypto101 #FinancialLiteracy
