#Liquidity101 💧
Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market price. High liquidity means you can buy or sell with ease—like trading popular coins such as BTC or ETH. Low liquidity assets, on the other hand, may take time to sell and may require price compromise. For traders and investors, liquidity is key—it ensures smoother transactions, less slippage, and fairer prices. Always check liquidity before investing in any asset. Understanding this simple concept can help you make smarter, safer financial decisions.
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