#Liquidity101 A liquidity represents the ease and speed with which an asset can be converted into cash without a significant loss of value. For example, money held in a checking account has high liquidity, as it can be used at any moment. On the other hand, a property has low liquidity, as it takes longer to sell and convert into cash.
Understanding liquidity is essential for those who want to invest in a conscious and balanced manner. The most profitable investment is not always the most suitable, especially if you need quick access to your capital.