❓ What is Liquidity?
Liquidity refers to how easily you can buy or sell an asset without causing a big change in its price.
💡 Think of it like turning your crypto or stocks into cash quickly — with minimal fuss or slippage.
📌 Key Components of Liquidity:
📊 Market Depth – Number of buy/sell orders across price levels
🔁 Trading Volume – Total amount of the asset traded over time
📖 Order Book – Real-time list of current buy and sell offers
🚀 Why Liquidity Matters:
📉 Price Stability – Higher liquidity = less price fluctuation
⚡ Ease of Trading – Enter and exit positions without big price swings
🎯 Market Efficiency – Better reflects the real market value of an asset
🔍 Types of Liquidity:
💸 High Liquidity – Fast & easy to trade (e.g., BTC, ETH, major fiat pairs)
🪙 Low Liquidity – Harder to trade, may cause price slippage (e.g., low-cap tokens)
✅ Pro Tips for Traders:
🔎 Always check trading volume before
