*#Liquidity101 | What is liquidity and why is it important to you as an investor? 💧*
🔍 *Liquidity* = The ease of buying or selling an asset without significantly affecting its price.
✅ *High liquidity* means:
– Lower spreads
– Faster order execution
– Less price volatility
❌ *Low liquidity* means:
– Difficulty in executing large orders
– Sharp fluctuations
– Additional risks for investors
💡 Liquidity is a key factor when choosing a currency or trading platform.
A project without liquidity = Difficulty in exiting safely!
📊 Remember: Strong liquidity = Healthy market and greater confidence.
Do you check liquidity before you invest? 🤔👇
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