#Liquidity101

Liquidity means how quickly and easily an asset can be bought or sold without changing its price much.

High liquidity = More buyers/sellers, faster trades, stable prices. (e.g., BTC, ETH)

Low liquidity = Fewer traders, slow execution, big price swings. (e.g., small altcoins)

Why it matters:

Easier entry and exit from trades

Lower slippage

More accurate pricing

Exchanges with high trading volume usually offer better liquidity.

Tip: Avoid large trades on low-liquidity assets—they can move the price against you.

Strong liquidity = smoother, safer trading.

Always check volume before jumping in!