💧 #Liquidity101 – What Is Liquidity in Crypto & Finance? 💧
Ever tried selling something fast, but no one was buying? That’s where liquidity comes in.
Liquidity = How quickly and easily you can convert an asset into cash without affecting its price too much.
🔹 High Liquidity = More buyers & sellers → Faster trades, stable prices
🔹 Low Liquidity = Fewer participants → Price slippage, delays, volatility
📊 In crypto, coins like BTC & ETH are highly liquid on big exchanges. But small-cap tokens? Not so much!
💡 Tip: Always check liquidity pools and order book depth before trading.
More liquidity = safer entry & exit.
Got rug pulled by low liquidity before? Share your experience below 👇
