#Liquidity101

The Lifeline of Markets 💧

Liquidity means how easily you can buy or sell an asset without big price changes.

🔹 High Liquidity

Fast trades ✔️

Stable prices ✔️

Tight bid-ask spreads ✔️

(Most common in popular assets like BTC, ETH, or large-cap stocks)

🔸 Low Liquidity

Harder to buy/sell ❌

Big price swings ❌

More slippage ❌

(Common in small-cap coins or tokens with low volume)

💡 Good liquidity = smoother trading experience

💡 Poor liquidity = potential losses when exiting

Always check volume and order book depth before jumping in!

I hope this info helped you....

If there are any errors please let us know in the comments