#Liquidity101 — is the foundation for understanding how financial markets operate. Liquidity refers to how quickly and easily an asset can be bought or sold at a fair price.

Highly liquid assets (such as #bitcoin , dollar, large stocks) are actively traded with minimal slippage. Low liquidity assets are harder to sell without losses.

On exchanges, liquidity is created by buyers, sellers, and market makers. The depth of the order book, volumes, and the spread between the buying and selling prices are key indicators of liquidity.

In crypto, liquidity is important for #DEFİ -protocols, especially in #DEX — where it is provided by liquidity pools.

More liquidity means less risk. Less liquidity means more volatility. Understand — and act wisely.