#Liquidity101 Have you tried to sell a cryptocurrency but no one is buying it? This represents a liquidity issue. What does liquidity consist of? Liquidity = The speed and ease with which an asset can be bought or sold without excessively influencing its value. 🔹 High liquidity = Numerous buyers and sellers, smooth transactions, more accurate spreads. 🔹 Low liquidity = Fewer participants, increased slippage, increased prices. New altcoin on a small DEX = High liquidity BTC on Binance = Low liquidity Why it is relevant: • You acquire more favorable prices (narrower spreads) • Faster operations • Less price manipulation • Greater confidence for large capital investors