#Liquidity101

Liquidity refers to how easily an asset can be bought or sold without affecting its price. In crypto, high liquidity means more buyers and sellers, resulting in faster trades and tighter spreads. Popular tokens like ETH or BTC usually have high liquidity, while lesser-known coins may have low liquidity, causing price slippage and delays. Liquidity is crucial for stable prices and smooth market functioning, especially in trading platforms and DeFi protocols. Investors should always consider liquidity when choosing assets or exchanges to avoid unexpected losses or trading issues.

Understanding liquidity helps you trade smarter.

#Liquidity101