#Liquidity101

#Liquidity101 ๐Ÿ’ง | 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.

๐Ÿ”น High Liquidity = Easy Trading + Less Slippage

๐Ÿ”น Low Liquidity = Harder Trading + More Price Impact

๐Ÿ“Œ 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!

โœ… Why It Matters:

More liquidity = safer, faster, and more reliable trading.

Stay smart, stay liquid. ๐Ÿ’ผ๐Ÿš€

#CryptoBasics #DeFi #Liquidity #TradingTips