#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means you can trade quickly with minimal slippage, which is common on major exchanges with popular coins like BTC or ETH. Low liquidity leads to price volatility and challenges in executing large orders. Liquidity is influenced by trading volume, market depth, and number of participants. When selecting coins or exchanges, consider the liquidity to avoid unexpected losses. Better liquidity usually means a safer trading experience. #Liquidity101