#Liquidity101

💧 What is liquidity in the crypto world?

Liquidity = The ease of buying or selling an asset without significantly affecting its price ✅

🔹 The higher the liquidity:

✅ Faster order execution

✅ Lower spreads

✅ A more stable market

🔸 Low liquidity means:

❌ Difficulty in buying or selling quickly

❌ Large price fluctuations

❌ Higher risk for investors

🧠 A simple example:

Imagine you buy a coin at a certain price, but there is not enough liquidity, so you have to buy at a higher price = immediate loss!

📈 Large platforms like #Binance offer high liquidity, which is a major reason why many people prefer them.

Did you know the importance of liquidity before? 🤔

Share your opinion 👇