What is Liquidity and why is it the cornerstone of the trading world? 🤔💧

Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. The higher the liquidity, the faster trades can be executed at fair prices, and the less slippage occurs.

🔹 High liquidity = Active market, small spreads, quick entry and exit from trades.

🔸 Low liquidity = Difficulty in buying or selling, sharp price fluctuations, less efficient execution.

In cryptocurrency markets, liquidity is provided through market makers or liquidity pools in decentralized platforms.

So, before you enter any project or currency, ask yourself: Is there enough liquidity?

Because trading without liquidity is like swimming in a pool without water. 🌊🚫

#كريبتو #Trading #101Liquidity