#Liquidity101
Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there's a large number of buyers and sellers, leading to smoother, faster transactions and more stable prices. Low liquidity often results in price slippage and higher risk. In crypto, large-cap coins like BTC and ETH usually have high liquidity, while smaller altcoins might have low liquidity.š As a trader, I always check the liquidity before entering a trade to avoid unexpected losses.š
#Liquidity101
