๐ง What Is Liquidity in the Crypto World?
๐ Liquidity = How easily you can buy/sell an asset without significantly changing its price.
๐น High Liquidity:
โก๏ธ Many buyers & sellers
โก๏ธ Low spread
โก๏ธ Quick & efficient transactions
Example: BTC/USDT on Binance
๐ธ Low Liquidity:
โก๏ธ Low volume
โก๏ธ High spread
โก๏ธ Prices can rise/fall drastically during trading
Example: New tokens on small DEX
๐ก Why Is It Important?
Because high liquidity = lower risk when trading.
๐ฏ Tips:
Always check volume & market depth before entering! Don't just buy coins with low volume.