#Liquidity101
#Liquidity101
Liquidity refers to how easily an asset can be bought or sold in the market without causing a drastic change in its price. High liquidity means there's a lot of buying and selling activity, which makes it easier to enter or exit trades quickly. Major cryptocurrencies like BTC and ETH have high liquidity due to strong demand and supply. Low liquidity, often found in new or obscure tokens, can result in slippage and delayed execution. As a trader or investor, always check liquidity levels before trading—liquidity can protect you from big losses and make your strategies more effective.
