#Liquidity101 Liquidity 101 💧📈

Liquidity refers to how easily you can buy or sell an asset without affecting its price too much.

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🔹 High Liquidity

• Lots of buyers and sellers

• Tight bid-ask spreads

• Faster trades at fair prices

✅ Examples: BTC, ETH on major exchanges

🔹 Low Liquidity

• Fewer participants

• Bigger spreads, slippage

• Harder to enter/exit positions

⚠️ Common in small-cap or new tokens

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💡 Why It Matters:

• More liquidity = better pricing, faster execution

• Less liquidity = higher risk of price swings

Always check liquidity before trading—especially with altcoins or on new platforms.