#CryptoCharts101 Liquidity refers to how quickly and easily an asset can be converted into cash without losing value. Cash is the most liquid asset, while items like real estate or art are less liquid because they take longer to sell. In financial markets, liquidity also means how easily securities can be bought or sold without affecting their price. High liquidity usually means smoother trading and lower risk. For individuals and businesses, maintaining liquidity is crucial to meet short-term obligations. A lack of liquidity can lead to financial stress. Simply put, more liquidity means easier access to money when you need it. haah