#Liquidity101 Definition: Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its price.
High Liquidity: Assets like stocks, Bitcoin, and major fiat currencies (USD, INR) are highly liquid—easy to buy/sell quickly.
Low Liquidity: Assets like real estate, rare collectibles, or low-volume altcoins are less liquid—harder to sell fast or at fair prices.
Market Liquidity: Indicates how active a market is; high liquidity means tighter bid-ask spreads and less slippage.
Importance in Crypto:
Easier entry and exit from positions.
Less price volatility.
