💧 #Liquidity101 — Why does liquidity matter in trading? 📊

Liquidity is the ability of an asset to be quickly bought or sold without a significant change in price. The higher the liquidity, the easier and more profitable it is to conduct transactions.

🔹 High liquidity means many buyers and sellers. This is typical for popular coins (BTC, ETH). Spreads are minimal, and trades are executed instantly.

🔸 Low liquidity means few participants in the market. In such cases, you risk selling cheaper or buying more expensively due to a large spread. This is especially important on DEX, where liquidity depends on pools.

🧠 For a trader, liquidity = safety and efficiency. Before entering a trade, check the trading volume and market depth.

Trade where there is movement!