#Liquidity101 Liquidity 101 (in 100 words):

Liquidity refers to how easily an asset can be bought or sold without affecting its price. High liquidity means there are many buyers and sellers, allowing fast and smooth trades—common in markets like major stocks or cryptocurrencies such as Bitcoin. Low liquidity means fewer participants, leading to price slippage and difficulty trading. Liquidity is crucial for traders, as it impacts execution speed, cost, and risk. Exchanges with high liquidity offer tighter spreads and better prices. In both crypto and traditional finance, strong liquidity ensures market stability and helps investors enter or exit positions efficiently with minimal price impact.