#TradingPairs101

Liquidity is the ease and speed of converting assets (such as stocks or real estate) into cash without a significant loss in value. A high-liquidity asset, such as cash or gold, can be sold quickly and at a price close to its market value. On the other hand, a low-liquidity asset, like real estate, may take a long time to sell and may require a price reduction. Liquidity is important because it affects the investor's flexibility in making quick financial decisions. In markets, high liquidity means a large number of buyers and sellers, which reduces price volatility. Good liquidity minimizes risks and increases trading efficiency.$ETH