#Liquidity101 Liquidity is a fundamental concept in trading and investing. It refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, allowing for smooth and quick transactions. For example, major cryptocurrencies like Bitcoin and Ethereum have high liquidity, while lesser-known tokens might have low liquidity. Traders prefer high-liquidity markets because they reduce slippage and allow for better price execution. Understanding liquidity helps in managing risk and planning effective trading strategies. It's one of the key factors that every trader should evaluate before entering a position. #Liquidity101