#Liquidity101

It can be bought or sold without a significant impact on its price.

🔹 High liquidity means there are many buyers and sellers. You can trade quickly, with narrow spreads and little impact on the price.

🔸 Low liquidity means fewer participants in the market. This leads to price slippage, wider spreads, and even order failures during high volatility.

🔍 Example:

If you are buying Bitcoin worth $1000:

Transferred