#Liquidity101

**💧 #Liquidity101: The "water" that moves the markets**

Have you ever tried to sell a token and no one bought it? That's **liquidity** (or lack of it). Let me explain quickly:

🔹 **What is it?**

The ease of buying/selling an asset **without affecting its price**.

🌊 **Liquid market (e.g., BTC on Binance):**

- Tight spreads

- Orders executed instantly

🏜️ **Illiquid market (e.g., shitcoins on DEXs):**

- Large differences between buy/sell

- Risk of slippage (final price ≠ expected price)

**Why does it matter?**

✅ More liquidity = lower costs and more stability

❌ Low liquidity = price manipulation (pump & dumps)

📌 **Tip for traders:**

- Check volume and depth chart before trading.

- In crypto, pairs with USDT or ETH tend to be more liquid.

Have you ever experienced that a lack of liquidity played a bad trick on you? 👇 #Trading #Crypto