#Liquidity101 What is liquidity and why does it matter in the crypto market?

Liquidity refers to how easily you can buy or sell a coin without causing a significant change in its price. A highly liquid market allows for quick trades, minimal slippage, and fair asset pricing. In contrast, low liquidity markets are more prone to manipulation and sharp price swings. This is especially important for investors and traders as it directly impacts trading efficiency. Always check liquidity levels before entering a position to reduce potential risks.

#Liquidity101