#Liquidity101

What is Liquidity in Crypto?

Liquidity = How easily an asset can be bought or sold without affecting its price.

High liquidity = Fast trades, tight spreads, less slippage.

Low liquidity = Harder to trade, higher volatility, more risk.

Why it matters:

Traders prefer high-liquidity markets like BTC or ETH.

Projects with low liquidity can pump/dump fast — trade wisely!

Pro Tip: Always check liquidity before entering a trade. It’s not just about price — it’s about how quickly and smoothly you can exit!