#Liquidity101 What is liquidity in trading?

Liquidity is the ability of an asset to be quickly sold or purchased without significant impact on its price.

🔹 **High liquidity** means that the asset is easily traded with minimal price changes (for example, bitcoin or shares of large companies).

🔹 **Low liquidity** can complicate the sale of an asset at the desired price (for example, rare altcoins or unique collectible assets).

⚖️ Liquidity is important for traders as it affects the speed of transactions, price fluctuations, and overall risks.

📊 How do you assess the liquidity of assets before trading? Share your thoughts.