#Liquidity101
#Liquidity101 ๐ง | What Does Liquidity Mean in Crypto?
Liquidity refers to how easily you can buy or sell an asset without affecting its price. In crypto, high liquidity means there's a large number of buyers and sellers, so you can trade quickly and at stable prices.
๐น High Liquidity = Easy Trading + Less Slippage
๐น Low Liquidity = Harder Trading + More Price Impact
๐ Example:
A token on a major exchange like Binance has high liquidity โ you can sell $1000 worth instantly. But a new token on a DEX with low volume? You might struggle to sell even $100 without changing the price!
โ Why It Matters:
More liquidity = safer, faster, and more reliable trading.
Stay smart, stay liquid. ๐ผ๐
#CryptoBasics #DeFi #Liquidity #TradingTips