#Liquidity101 💧 #Liquidity101

Liquidity in the cryptocurrency market refers to how easily an asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers, making it easy to execute orders quickly and at a fair price. For example, a currency like Bitcoin has very high liquidity because it is actively traded on most platforms. Liquidity is important because it reduces the risk of slippage and enhances the overall trading experience. Therefore, one should always consider the daily trading volume of any currency before making a buy or sell decision. 💼

#BTC