#Liquidity101 #Liquidity101
Ever heard the term “liquidity” in crypto or trading and wondered what it really means? 🤔
Here’s a quick breakdown:
💧 Liquidity = How easily you can buy or sell an asset without affecting its price too much.
🔹 High Liquidity
Many buyers & sellers
Fast trades
Small price slippage
✅ Example: Popular coins like BTC or ETH
🔹 Low Liquidity
Fewer buyers & sellers
Harder to enter/exit trades
Bigger price changes
⚠️ Common with lesser-known or new tokens
📈 Why it matters:
More liquidity = smoother trading experience, tighter spreads, and more stable prices!
So next time you trade, always check the liquidity first! ✅
#CryptoBasics #TradingTips #LiquidityMatters #CryptoEducation #DeFi #Web3 #Liquidity101