💧 #Liquidity101 — What is liquidity and why is it important?

📈 Liquidity is the ability of an asset to be quickly sold or bought without a significant change in price.

🔹 High liquidity:

Many buyers and sellers

Small spreads between bid/ask

Minimal slippage

Example: BTC, ETH, Apple stocks

🔸 Low liquidity:

Few participants in the market

Large spreads

Difficult to buy/sell a large volume without impacting the price

Example: new tokens, penny stocks

📊 Why is liquidity important for a trader?

✅ Fast order execution

✅ Less loss on slippage

✅ More price stability

✅ Easier to exit positions in crisis moments

🧠 Tip:

Before trading, check the volume and market depth. High liquidity = fewer surprises.