📘 #liquidity Why is liquidity the soul of the market?

Imagine wanting to sell a bicycle, but nobody wants it. What do you do? Wait, lower the price, or give up? The same thing happens in markets when there is a lack of liquidity.

🧠 What is liquidity?

It is the ease with which you can buy or sell an asset without its price changing too much.

💧 High liquidity = healthy market

Many buyers and sellers

Less difference between buying and selling prices (spread)

Faster and fairer transactions

🌵 Low liquidity = financial desert

Few interested parties = unstable prices

Risk of your order not being executed or being executed poorly

More volatility

📊 In crypto, liquidity matters more than ever:

It influences the real price of your token

Affects trading outcomes and slippage

Is key to choosing which pairs to trade (not just for trends)

⚠️ Maybe Tip:

Before entering a new token, check its liquidity. It can be the difference between winning or getting stuck in a trade with no exit.