#Liquidity101

Liquidity is how easily you can buy/sell a cryptocurrency without moving its price. High liquidity = tight spreads, low volatility, fast trades. Low liquidity = price swings, higher costs.

Key factors:

Deep order books: More buy/sell orders = better liquidity.

Trading volume: High volume = smoother trades.

DeFi pools: Platforms like Uniswap rely on user-funded pools for liquidity.

Why it matters: Affects trade speed, cost & stability. Low liquidity risks slippage!

Check major coins like BTC/ETH for high liquidity, but altcoins may vary. Stay sharp on BINANCE