#Liquidity101 Liquidity = how easily an asset can be bought or sold without impacting its price.

🔍 Think of it like this:

High liquidity = Plenty of buyers & sellers

Low liquidity = Few buyers/sellers = big price swings

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💠 Why Liquidity Is Crucial:

✅ Tighter spreads – You get better prices

✅ Faster execution – Trades go through quickly

✅ Less slippage – Your price doesn’t change mid-trade

✅ More stable market – Reduces pump-and-dump risk