##Liquidity101

#Liquidity101 💧

Liquidity is how easily an asset can be bought or sold without affecting its price.

In simple terms:

💸 High Liquidity = More buyers & sellers = Fast trades, stable prices

🔒 Low Liquidity = Fewer participants = Slower trades, bigger price swings

For example, Bitcoin has high liquidity—it's traded globally with many participants. But a new token with few holders may have low liquidity, making it harder to buy or sell without a big price change.

Why it matters:

Liquidity impacts how fast you can enter/exit trades and what price you’ll get.

✅ Always check liquidity before investing!

#CryptoBasics #TradingTips #Crypto101 #FinancialLiteracy