#Liquidity101

📊 #Liquidity101: What is liquidity in the crypto world?

Liquidity is one of the key concepts in financial markets and even more so in the crypto world. It refers to how easily an asset can be bought or sold without significantly affecting its price. 🪙

In a market with high liquidity, you can trade large volumes quickly and with less volatility. But in one with low liquidity, prices can move sharply, representing greater risk.

A good level of liquidity enhances the trading experience, reduces slippage, and ensures that there is always someone on the other side of the trade. 🚀

Knowing the liquidity of a token is as important as its price!